In light of the price hike of crew oil in the international market and a mechanism connecting current price of product oil and the international market, National Development and Reform Commission has decided the producer price of petrol will be raised by 300 yuan per ton from Mar. 23 on and the retail price will be raised in accordance with the fluctuation of oil ex-factory price.

Official with National Development and Reform Commission noted that the oil price hike in the international market since March this year has set the historic record. Currently, the domestic product oil and crow oil price are showing a tendency of reversal, and the prices are also much lower than those in the international market. The oil-refining enterprises are facing the huge pressure of increasing cost. And the import of product oil also suffers from deficit.

The official further added that the current price rise on petrol aimed at arousing the enthusiasm of oil-refining enterprises so as to boost the import of product oil, ensure the domestic oil supply and control the unreasonable demands at home. The price of heavy oil, which is used for diesel oil refining and chemical fertilizer production, will not be raised this time.

National Development and Reform Commission demanded that China National Petroleum Corporation (CNPC) and Sinopec should make reasonable adjustment on the internal producer price of petrol and diesel oil, and get well prepared for the product oil supply, the diesel oil supply in particular, during the spring ploughing season, and urge those enterprise subordinated to implement the national price policy strictly.

By People's Daily Online