The new pricing mechanism for oil products introduced during the year and strive to.

<p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; TexT-ALiGn: center; mso-layout-grid-align: none" ALIGN="center"> <b .STYLE = "mso-bidi-font-weight: normal"> </ P> <p STYLE = "MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; TexT-ALiGn: center; .mso-layout-grid-align: none "ALIGN =" center "> <b STYLE="mso-bidi-font-weight: normal"> new pricing mechanism for refined oil during the year and strive to put </ P> <p STYLE = ."MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; TexT-ALiGn: center; mso-layout-grid-align: none" ALIGN = "center"> 2010 年 10 月 26 日./ Oriental Morning Post / Li Yue Group </ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> <wbr> .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> <wbr> <wbr> <wbr> ."At present the parties to the refined oil pricing mechanism reform has been basically reached a consensus on the period from 22 days to adjust the existing provisions of refined oil prices to a week for a tune." </ P> <p STYLE = "MArGin: 0cm .0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none "> According to Xinhua News Agency reported yesterday, the National Development and Reform Commission (hereinafter: National Development and Reform Commission) said ."The new pricing mechanism for oil products will be introduced during the year and strive to, the mechanism will be more transparent." </ P> <p STYLE = "MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150% .; mso-layout-grid-align: none ">" the existing mechanism of supply and demand derailed "</ P> <p STYLE =" MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso .-layout-grid-align: none "> the other, according to Caijing reported yesterday, a state-owned oil company official, the current parties to reform oil pricing mechanism has formed a consensus on the time required from the existing .22 days to adjust oil prices to a week for a tune. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> The source also said that the new oil .pricing mechanism may be canceled, "according to changes in international crude oil market 4% frequency of adjustment of domestic oil prices," the limit, to adjust according to the international oil price ups and downs. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> now refined oil pricing is based on national development .Reform Commission on May 7, 2009 issue of the "oil price control measures (for Trial Implementation)" (hereinafter: the "Rules") to adjust. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> under the "Rules", when the international crude oil market .moving average price changes for 22 consecutive days over 4%, the National Development and Reform Commission can adjust the domestic prices of refined oil. .When international oil prices below 80 dollars per barrel, the calculation of the normal processing of profit oil prices; above 80 U.S. dollars a barrel, the profit margins began to reduced processing until the zero profit calculated according to prices of refined oil processing; higher than .130 U.S. dollars per barrel, in accordance with both the producer, consumer interests and maintain smooth operation of the principle of the national economy, to take appropriate fiscal policies to ensure that production and supply of refined oil, gasoline and diesel prices in principle, provide or less mention. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> but the price of more than a year in practice .After the allegations of lack of transparency in the rules, adjust the cycle is too long, requires too much, the domestic supply and demand and other issues derailed. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> It is because of the long 22 working days .4% plus a substantial period, resulting from this year on June 1 after the oil price adjustments, although the fluctuations in international crude oil prices, domestic oil prices are up more than 4 months at the time did not make any adjustments. .In between these 4 months in some areas, even the oil shortage problem. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> "pricing model is difficult to borrow abroad," </ .P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> China Petroleum University, Associate Dean of Business Administration Dong Xiucheng .said: "current" means "The biggest problem is the time difference problems from the past to determine the current price of oil, and the cycle is too long, so traders can easily be based on judging the trend of international oil prices, when oil prices rise in anticipation of possible .By way of hoarding profits, but will likely fall in the expected future situation, the sharp sell-off. "</ P> <p STYLE =" MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line- .HeiGHT: 150%; mso-layout-grid-align: none "> Dong Xiucheng also believes that the" measures "does not take into account the domestic supply and demand, crude oil prices alone changes in the international market, is not sufficient response to the domestic supply and demand .of, "such as domestic oil demand is not the case, the international crude oil prices may still rise, in this case also raised domestic oil prices is clearly unreasonable." </ P> <p STYLE = " .MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none "> Dong Xiucheng that fancy from the direction of reform, the new pricing mechanism should try to .shorten the adjusting period, the merchant is difficult to speculate based on expectations, while the domestic supply and demand need to be consolidated into account, out of line to avoid the situation inside and outside. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> "In addition, price adjustment is complex, requiring layers .layer of approval, such as the NDRC price department was the State Council on the need to plan, be released after the adoption of directives, which requires a time process. It is already not 'published price' but 'pricing' of. a reasonable approach is to .strictly estimates, timely release of orders, not through the approval. "Dong Xiucheng added. .</ P> <p STYLE="MArGin: 0cm 0cm 0pt; LAYoUT-GriD-MoDe: char; Line-HeiGHT: 150%; mso-layout-grid-align: none"> the current prices of refined oil in Western countries is entirely .market supply and demand decisions, and the Government does not in any way. .Dong Xiucheng that the current domestic oil product sales of the main view, not appropriate to adopt this approach, "Western countries, sales of finished products market is sufficiently competitive, unlike the domestic market is so concentrated, the two companies (PetroChina, Sinopec) are almost .can dominate the market trend. if we give up the government's pricing, then the case is not fully competitive, may be the problem of high prices. "</ P>.