Fuel prices flat in new system
By Richard Fu |
April 11, 2013, Thursday
|
Print Edition
Print Edition
CHINA has kept fuel prices unchanged in the first review under its new pricing mechanism because changes in global crude rates were not enough to justify any change.
The National Development and Reform Commission said yesterday that global crude prices were basically flat as 10 working days ago when China last adjusted fuel rates.
The NDRC, China?s top planning body, unveiled a new fuel pricing mechanism that cuts the price adjustment cycle from 22 working days to 10 and removes minimum thresholds when crude prices change.
The moves will lead to more market-driven prices in China which will improve profit margins in refining for oil majors like Sinopec Corp and PetroChina Co. They could also reduce speculation in the fuel market.
Still, prices will not be adjusted if the resulting fuel price changes are less than 50 yuan (US$8.10) per ton under the new mechanism. Any changes will be reflected in future price adjustments.
In another change, the NDRC also said it will announce price changes around 5pm when it reviews prices in the future. If there is no change, it will notify the public around 3pm.
In the past, the NDRC announced increases in fuel prices late in the night.
The National Development and Reform Commission said yesterday that global crude prices were basically flat as 10 working days ago when China last adjusted fuel rates.
The NDRC, China?s top planning body, unveiled a new fuel pricing mechanism that cuts the price adjustment cycle from 22 working days to 10 and removes minimum thresholds when crude prices change.
The moves will lead to more market-driven prices in China which will improve profit margins in refining for oil majors like Sinopec Corp and PetroChina Co. They could also reduce speculation in the fuel market.
Still, prices will not be adjusted if the resulting fuel price changes are less than 50 yuan (US$8.10) per ton under the new mechanism. Any changes will be reflected in future price adjustments.
In another change, the NDRC also said it will announce price changes around 5pm when it reviews prices in the future. If there is no change, it will notify the public around 3pm.
In the past, the NDRC announced increases in fuel prices late in the night.
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