Home / Business / Business Highlights Tools: Save | Print | E-mail | Most Read | Comment
Behind the oil price hike
Adjust font size:

On June 20, the National Development and Reform Commission (NDRC), China's top economic planning authority, announced an oil price increase. This was surprising because just ten days ago a senior NDRC official stated publicly that deferring any action on oil product prices is a stabilizing factor for the economy. What caused such a dramatic change in just 10 days?

According to unknown sources quoted by the Economic Observer, two Chinese major oil companies played a key role in bringing forward the rise in oil product prices.

Since February this year, the two oil companies have been constantly flagging their losses caused by surging international oil prices to the NDRC. These reports became daily in early June.

Correspondingly, the NDRC has been filing formal reports to the State Council for a month, proposing an oil price rise. Meanwhile, the two oil makers also sought other channels including high-level internal reports, to get to the government's decision-making level. Finally, the issue attracted top officials' attention.

On June 10, the NDRC held a small-scale internal meeting to discuss whether it was necessary to raise oil prices. Representatives from the two oil producers and officials from relevant government organs attended the meeting. The meeting determined details of the proposed oil price increase, including when and by how much to raise prices. The meeting specifically noted that there was no need to invite any experts' opinions.

During the recent fourth round of the China-US Strategic Economic Dialogue, US Treasury Secretary Henry Paulson proposed that the Chinese government should loosen control over oil prices. According to government sources, his clear-cut attitude, along with other international pressure, was also a driver in the recent oil price hike.

For more details, please read the full story in Chinese

(http://www.eeo.com.cn/Politics/beijing_news/2008/06/24/104120.html).

(China.org.cn by Yan Pei June 24, 2008)

 

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- China raises oil price by US$144.9 per ton
- 2 expedients to deal with oil price hike
- PetroChina calls for fuel price hike
- Raised jet fuel price dismays airlines
Most Viewed >>
- Baosteel to pay almost twice for ore
- Economists warn of future woes
- Warning on high global oil prices
- Auto China 2008 staged in Beijing
- Summer grain output to top 120m tons
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?