Price differences for finished oils
(i) the retail and wholesale prices of gas, diesel fuel, as well as the introduction of government-directed prices for the supply of specialized users such as wholesale enterprises, railways, transport and diesel
(ii) government pricing of gas, diesel supplies for national reserves and xinjiang production, as well as of petrol and kerosene for aviation。
Product oil pricing principle
When the average price of crude oil on the international market has changed by more than 4 per cent for 22 consecutive working days, the price of domestic finished oil can be adjusted accordingly。
• when the price of crude oil on the international market is below $80 per barrel, the price of oil is calculated at the normal processing margin. When higher than $80 per barrel, the processing margin was reduced until the price of the oil was calculated on the basis of zero processing profits. In excess of $130 per barrel, appropriate fiscal policies are adopted to ensure the production and supply of finished oil, in accordance with the principle of balancing producer-consumer interests and the smooth functioning of the national economy, with no or no reference to the price of gas and diesel fuel in principle。
• the national development and reform commission sets the highest retail prices for gas and diesel in the provinces (autonomous regions, municipalities directly under the central government) or central cities. The maximum retail prices for steam and diesel are based on the price of crude oil on the international market, taking into account domestic average processing costs, taxes, reasonable circulation chain costs and appropriate profits. The national development and reform commission adjusts the relevant cost parameters to the actual situation。
• the national development and reform commission has developed principles for the conversion of gas and diesel ton litres. The provincial price authorities, in conjunction with the authorities concerned, establish local conversion factors for gas, diesel and ton of diesel, based on nationally determined conversion principles. On this basis, provincial price authorities set local maximum retail prices for gas and diesel, in higher units。
