Tuesday, September 14, 2010

Experts say too early to lower domestic oil prices



International crude oil prices since August has continued to fall, and was the day before the session below 60 U.S. dollars a barrel mark, record lows for the year. Experts believe that this will come to domestic fuel prices will be lower homeopathy, premature.

China's current oil prices last month, largely by reference to Singapore, New York, Rotterdam and the three weighted average market price plus taxes and fees are determined accordingly, the Chinese and international oil prices, oil prices roughly one-month time lag exists.

However, Sinopec lowered the price of oil has to respond to rumors that the current oil price of Sinopec International prices converted into U.S. dollars in the 57 ~ 58, still lower than international prices, the overall is still inverted.

HAN Xiao-ping, vice president of China's energy network of "First Financial Daily" said that Sinopec is clearly disclosed in the equivalent price is too low, and our residents do not use fuel oil tax rates lower than the United States, PetroChina and Sinopec to be in control of the international Crude oil futures prices on the cost of energy, rather than as the cost of international crude oil prices directly to consumers.

Earlier, the National Energy Research Institute director Zhou Dadi said that if the international crude oil prices remain at 60 dollars or less up to 1 ~ 2 months, China may cut domestic prices of refined oil products. But recently he said the recent reduction in oil prices can not.

HAN Xiao-ping said that the current domestic oil price is 70 dollars per barrel based on the past standard-setting, so the domestic oil prices will trend lower as international oil prices is inevitable. However, if lower domestic oil prices, the Government may thus begin payment of duty.

"Under the current oil prices, the domestic low-emission cars is still growing rapidly, indicating the residents car prices still have considerable tolerance." HAN Xiao-ping said that the new tax is only filled with oil prices lower to the price gap, which would effectively prevent additional pressure to consumers and reduce the resistance to policy implementation.

He further said that if the introduction of fuel tax, combined with the actual use of fuel tax on fuel costs will decline in doubt than before.







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