Development and Reform Commission is optimizing product pricing mechanism

Every move made by the reform of China's refined oil pricing mechanism has affected all parties. At the performance meeting yesterday, Wang Xinhua, the chief financial officer of Sinopec, revealed to the reporter that the country is evaluating, analyzing and improving the new refined oil pricing mechanism that has been implemented for more than a year, summing up the situation in the past year, and looking for possible further optimization. The general direction is still marketization.

“After the implementation of the new refined oil pricing mechanism for a year, the refining sector reversed policy losses. However, after the second half of last year, international oil prices rose sharply, while the increase in domestic refined oil prices was less than the increase in international crude oil prices. This made the company in the first half of the year. The gross profit of refining has declined year-on-year, said Wang Xinhua.

However, he also disclosed that from the perspective of the refining sector in the second quarter, it was better than the first quarter, and gross profit rebounded, mainly due to the increase in domestic refined oil prices in April. In the second half of the year, there are still many uncertainties and the operating pressure for refining operations is still relatively large. At present, the company's refinery operating rate is still above 90%, and it is expected that the gross profit of refining in July and August will be equal to that in the second quarter.

“Since June, international oil prices have fluctuated repeatedly between US$70-80, but the rate of change in average moving prices for 22 consecutive working days has not exceeded 4%, so China has not adjusted oil prices for three consecutive months.” Wang Xinhua disclosed The country is now assessing, analyzing and improving the pricing mechanism for new refined oil that has been implemented for more than a year, summing up the situation in the past year, and looking for possible further improvements. However, the specific optimization content and adjustment timetable have not yet been implemented.

He emphasized that the perfect direction of pricing mechanism for refined oil products is still market-oriented. "In this way, in the long run, the development of the company's refining sector will still be more favorable."

He also pointed out that the market competition in the domestic refining sector in the second half of the year is still very fierce. The company will optimize the product structure, expand the total business volume, and bring into play the advantages of cost, scale, and technology to maintain its leading position in the market.