China: Government Considering More Autonomy on Prices for Oil Companies
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Monday, 07 November 2011 |
Chinese oil companies will be given the right to set fuel retail prices under a new system of pricing, according to China Securities Journal. Citing an unnamed source, the newspaper said that the Government would no longer routinely issue notifications regarding price adjustments under the new system, and that the National Development and Reform Commission (NDRC) will only step in when crude prices go outside a given range.
Under current regulations, the NDRC adjusts the retail price of refined products whenever a rolling 22-day average of crude prices moves by 4% or more. Changes to the current mechanism have been expected since late last year.
"In the future, details regarding the crude basket and exchange rate adjustment cycle will likely be announced," said China Securities Journal’s unnamed source.
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