China's refined oil prices cut the fuel surcharge on Mainland routes again
Prices of gasoline and diesel dropped by 2.5% and 3.2% respectively
The two uniform price cuts within one month indicate that China's refined oil prices have linked overseas crude oil prices with actual actions.
The National Development and Reform Commission decided to reduce the prices of gasoline and diesel by 140 yuan and 160 yuan per ton respectively since January 1st on January 15, after adjusting for 5,440 yuan and 4,810 yuan per ton respectively, with a decrease of 2.5% and 3.2% respectively.
On December 19 last year, the highest drop in the supply price of gasoline and diesel in China was 17%. This means that the price of oil is lowered twice in one month and the total decline is about 20%.
"Confidentiality is clearly doing very well." A senior executive of a provincial-level sales company under Sinopec said yesterday to the "First Financial Daily".
The two major oil companies did not receive notice until around 4PM yesterday and waited for details of the price adjustment. The time for the NDRC to release information is about 5 o'clock.
Interact with international oil prices
The Development and Reform Commission explained the price adjustment and said that compared with international crude oil prices, according to the refined product oil price formation mechanism, China's refined oil prices have room for downward adjustment.
The State Council’s previous document describes the new product oil price formation mechanism as follows: The ex-factory price of refined oil products in China is based on crude oil prices in the international market, plus domestic average processing costs, taxes, and appropriate profits. When the average price of crude oil in the international market changes over a certain period of time, the price of domestic refined oil is adjusted accordingly.
The price adjustment was the smallest since the July 23, 2005 NDRC adjustment. This is because, since December 19 last year, international oil prices have only declined slightly, so the decline in this round of prices is very small. This also shows that China's refined oil prices have fully achieved linkage with the overseas crude oil market.
Xu Kunlin, deputy director of the price division of the National Development and Reform Commission, said in an interview with this reporter yesterday that the price reduction of refined oil was the adjustment made by the country to changes in crude oil prices in the international market over a period of time. It was a normal price adjustment.
"In the future, domestic refined oil prices will be based on the changes in crude oil prices in the international market. When international oil prices exceed a certain range for a period of time, the country will adjust the refined oil prices in due course," said Xu Kunlin.
Liu Feng, a Zhuochuang Information Expert, also stated: “The rise or fall of domestic refined oil products in a period of time will depend mainly on the trend of international crude oil prices. With the fluctuation of international oil prices, price adjustment will be a normal state in the future.†Securities [26.30 10.00%] Liu Bo judged that the possibility of frequent adjustment within half a month is unlikely.
However, Xu Kunlin said that the specific pricing mechanism of refined oil, which kinds of international oil products will be benchmarked, and which “range†will be adjusted, etc., will not be announced due to the “state secretsâ€, otherwise it may trigger the market. Speculation.
"No country in the world has announced the specific pricing mechanism for its domestic refined oil products," said Xu Kunlin.
There is still room for price cuts
However, even so, China's refined oil prices still have room for downward adjustment.
Yesterday, the oil prices of the US Futures Exchange's WTI and Brent were US$37.78 and US$44.83 per barrel, respectively, which fell by about 75% from the highest peak in 2008.
Liu Bo said that even with the consumption tax, Singapore's imported gasoline and diesel prices on the mainland are 1,500 to 2,000 yuan lower than the domestic price per ton.
A senior person from the sales company of PetroChina told the reporter: “After December 19 last year, oil companies across the country were all lowering oil prices, and it was also clear that there was room for price cuts at domestic gas stations. Of course, the purpose of price cuts by enterprises was the most important. Is to clean up inventory."
According to estimates of the senior personage, after this price reduction, compared to the current domestic refined oil prices, there is a 0.1 to 0.2 yuan/liter reduction.
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