China govt shows reluctance to up oil prices
Thursday, 25 October 2007
BEIJING, Oct 24 (Xinhua): Chinese government will continuously control domestic oil prices in the face of amounting internal inflation pressure and international oil prices.
According to Zhu Zhixin, vice-minister of the National Development and Reform Commission (NDRC), the pricing of oil products is determined by crude oil prices, the overall situation between demand and supply, enterprise production costs and consumers' affordability.
Zhu said that the sharp rise in oil prices would help lift the costs for oil consumption thus cutting profits of enterprises but adding interest to oil producers. However, the rising oil prices could force crude oil-processing companies to intensify efforts in reducing carbon emissions and improving efficiency.
Analysts here maintained that what Zhu said still doesn't release active signal of energy price reforms reflecting decision makers' hesitation.
Currently, international oil prices are unlikely to dive and demand and supply are tightly balanced both in and outside China.
Though most domestic oil companies will suffer from higher oil prices, oil product price hikes certainly will challenge to social fabrics amid inflation pressures.
Hence, the likelihood of oil product price rises seems gloomy in the foreseeable future.
According to Zhu Zhixin, vice-minister of the National Development and Reform Commission (NDRC), the pricing of oil products is determined by crude oil prices, the overall situation between demand and supply, enterprise production costs and consumers' affordability.
Zhu said that the sharp rise in oil prices would help lift the costs for oil consumption thus cutting profits of enterprises but adding interest to oil producers. However, the rising oil prices could force crude oil-processing companies to intensify efforts in reducing carbon emissions and improving efficiency.
Analysts here maintained that what Zhu said still doesn't release active signal of energy price reforms reflecting decision makers' hesitation.
Currently, international oil prices are unlikely to dive and demand and supply are tightly balanced both in and outside China.
Though most domestic oil companies will suffer from higher oil prices, oil product price hikes certainly will challenge to social fabrics amid inflation pressures.
Hence, the likelihood of oil product price rises seems gloomy in the foreseeable future.