Zhitong Financial APP learned that on the afternoon of March 17, the National Development and Reform Commission released information that starting from 24:00 on the same day, the price of domestic oil products would be raised according to the mechanism. The details of this oil price adjustment are as follows: domestic gasoline and diesel prices have increased by 750 yuan and 720 yuan per ton respectively. In this regard, the reporter interviewed the relevant responsible comrades of the National Development and Reform Commission. Relevant personnel said that when the international oil price continues to rise, but does not exceed 130 US dollars per barrel, the price of domestic oil products will be adjusted normally according to the mechanism; if it is higher than 130 US dollars per barrel, in accordance with the provisions of the "measures for the Management of Oil prices," in accordance with the principle of taking into account the interests of producers and consumers and maintaining the smooth operation of the national economy, appropriate fiscal and taxation policies should be adopted to ensure the production and supply of refined oil products, and gasoline and diesel prices should not be mentioned or undermentioned in principle.
The full text is as follows:
On the afternoon of March 17, the National Development and Reform Commission released information that starting from 24:00 on the same day, the price of domestic oil products would be raised according to the mechanism. In this regard, the reporter interviewed the relevant responsible comrades of the National Development and Reform Commission.
Q: how have international oil prices changed since the beginning of this year?
答：Since the beginning of this year, supply and demand in the global oil market has been tight, geopolitical events have occurred frequently, and international oil prices have continued to rise. The futures price of Brent crude oil, for example, was $96.8 a barrel on February 23, up 22.6% from the start of the year. After the outbreak of the conflict between Russia and Ukraine on February 24, international oil prices soared rapidly, surpassing 139 US dollars per barrel in intraday trading on March 7, a 13-year high, and then fluctuating back down to about 100 US dollars per barrel, which is still higher than the level before the outbreak of the Russian-Ukrainian conflict.
Q: how have the prices of domestic oil products been adjusted so far this year?
答：In accordance with the relevant provisions of the measures for the Administration of Oil prices, the maximum retail prices of domestic gasoline and diesel are adjusted every 10 working days in accordance with the changes in the price of crude oil in the international market. As of March 17, there were five price adjustment windows this year, with national gasoline and diesel prices rising by 1875 yuan and 1805 yuan per ton respectively, up 21 percent and 23 percent respectively over the beginning of the year. Among them, the domestic gasoline and diesel prices per ton increased by 750 yuan and 720 yuan respectively.
Q: international oil prices have fallen somewhat recently, why do they still raise the prices of refined oil products?
答：As mentioned earlier, the price of domestic oil products is adjusted every 10 working days, and each price adjustment mainly depends on the comparison between the average international oil price in the 10 working days before the price adjustment and the average international oil price in the 10 working days before the price adjustment. It is not simply determined by the changes in international oil prices a few days before the price adjustment. After the last price adjustment (March 3), international oil prices jumped sharply. Although they have fallen somewhat recently, according to comprehensive calculation, the average value of nearly 10 working days is still much higher than that of the previous period.
As the domestic oil product price adjustment is linked to the average international oil price in the first 10 working days, there have been many cases in which the international oil price rose sharply before the price adjustment date, but the domestic oil product price fell in the current period. For example, December 17, 2021 is the day of price adjustment. International oil prices have risen continuously in the previous two working days, but the current domestic gasoline and diesel prices have been reduced by 130 yuan and 125 yuan per ton respectively. A similar situation occurred on the day of price adjustment on July 26, March 31, 2021 and September 18, 2020.
Q: if international oil prices continue to rise, how will the prices of domestic oil products be adjusted?
答：When the international oil price continues to rise, but does not exceed 130 US dollars per barrel, the price of domestic oil products will be adjusted normally according to the mechanism; if it is higher than 130 US dollars per barrel, in accordance with the provisions of the "measures for the Administration of Oil prices," in accordance with the principle of taking into account the interests of producers and consumers and maintaining the smooth operation of the national economy, appropriate fiscal and taxation policies should be adopted to ensure the production and supply of refined oil products, and gasoline and diesel prices should not be raised or less raised in principle.
This article is edited from the official account of the National Development and Reform Commission, Zhitong Financial and Economic Editor: Wang Jie.