What is the domestic oil price adjustment mechanism?
2 Answers
Domestic oil price adjustment mechanism is the refined oil pricing mechanism issued by the National Development and Reform Commission. The following is an introduction to the refined oil pricing mechanism: 1. Introduction: The current refined oil retail benchmark price that allows upward and downward floating pricing mechanism is changed to implement the maximum retail price, and the circulation link price difference is appropriately reduced. The maximum retail price is determined based on the ex-factory price plus the circulation link price difference. 2. Drafting background: The National Development and Reform Commission drafted a reform plan for the refined oil price formation mechanism, changing the current refined oil retail benchmark price that allows upward and downward floating pricing mechanism to implement the maximum retail price, and appropriately reducing the circulation link price difference. At the same time, the new plan proposes to reduce the original 8% fluctuation range allowed for enterprises according to the government's guiding price to about 4%, and round the amount to determine.
As an experienced driver with several years behind the wheel, I always pay close attention to fuel price fluctuations. In China, we have a quite transparent fuel pricing mechanism. Simply put, domestic fuel prices are adjusted approximately every 10 days based on the average changes in international oil prices, using benchmarks like Brent crude. The National Development and Reform Commission established this system to stabilize the domestic market and prevent drastic fluctuations. For example, if international oil prices rise or fall beyond a certain threshold, say 50 RMB per ton, domestic retail prices will be adjusted accordingly. There's also a protective mechanism called floor and ceiling prices: when oil prices get too high, the government intervenes to control inflation, and when they're too low, it prevents sharp declines that could affect production. I recall that current fuel prices also include road maintenance fees and consumption taxes, which are fixed components, meaning the actual price isn't solely determined by international factors. While this mechanism keeps domestic prices aligned with the international market, it helps reduce the financial burden on drivers. I'd recommend keeping an eye on fuel price adjustment windows, like checking the calendar each month, and filling up your tank in advance to save money.
