China’s Processed Oil Price Fell by 32.1USD/ton on 29th, July
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www.shcri.com - On July 28th, 2008, China’s Development and Reform Commission issued a notice of lowering processed oil price — cut off 220 RMB/ ton (32.1 USD). The adjusted prices of gasoline and diesel were 6,510 RMB/ton (950.4 USD) and 5,770 RMB/ton (842.3 USD) respectively, equivalent to 0.16 RMB/L and 0.19 RMB/L from 0:00 on July 29th, 2009. This is the second price reduction of Chinese refined oil in 2009, and also the first reduction of refined oil price after the publication of the new price adjustment mechanism.
Market is the first to respond; in all parts of China, the wholesale price of refined oil has already dropped. Recently China’s wholesale price of refined oil dropped continuously; therefore the market profit space of wholesale markets has been greatly compressed. The wholesale prices of refined oil throughout China have been diving sharply; the average decline was between 500-600 RMB / tons.
Behind the cutting of prices is the weak demand. A few days ago, statistics of production and operation released by China’s largest processed oil seller — China Petroleum & Chemical Corporation shown that the whole sales volume for domestic oil products fell by more than 8% in the first half of 2009, with a decrease of almost 6 million tons; with the largest decline rate in retail sales volume of 12.77%.
According to “Oil Pricing Mechanism”, which published by Chinese government on May 8th, 2009, the adjustment of domestic oil products prices would be made when the average international market price of crude oil has been changing more than 4% for 22 days. On July 28th, the price in September crude oil futures contracts was about 67 USD/barrel on the international benchmark of oil prices in New York Exchange, and in the last domestic oil products price adjustment (on June 30th) the quote was about 70 USD / barrel, cut about 4%.
July 28th was just 22 working days from June 30th when China’s National Development and Reform Commission raised the price of refined oil. Monitoring data showed that as far as July 24th , in three regions such as Brent, Dubai, Cinta the change rate of average crude oil price have reached -5.41%, with a decrease rate of more than 5%.
China Development and Reform Commission announced that after this price cut, the Chinese domestic refined oil prices remained more than 7 USD higher than international oil prices, and much lower than the three types of reference prices. However, many people questioned that on June 1st and June 29th, China National Development and Reform Commission twice raised the price of refined oil prices by about 6% and 9% respectively, while at this time the price-cut range is only 4%, which means that the decline rate of domestic refined oil prices cannot keep up with that of international oil prices. Therefore it cannot change people’s questioning for “fast increase and slow decrease”.
The Change Events of China’s Refined Oil Price Since 2009:
? on Jan 14th, gasoline and diesel prices decreased by 140 RMB/ton and 160 RMB /ton respectively
? on March 25th , gasoline and diesel prices increased by 290RMB /ton and 180 RMB /ton respectively
? on June 1st , the price of petrol and diesel were increased by 400 RMB /ton respectively
?on June 30th , products such as gasoline and diesel oil prices both increased 600 RMB /ton
?on July 28th , gasoline and diesel prices reduced 220 RMB/ton respectively
Since China officially launched the fuel tax reform this year, oil prices have been adjusted for 5 times, the increase rate far exceeded the decline rate.
Take the ex-factory price of gasoline as an example, on January 14th and July 28th the price went down by 140 RMB/ton and 220 RMB/ton respectively, but on March 25th, June 1st and June 30th it was raised by 290 RMB/ton, 400 RMB/ton and 600 RMB/ton respectively. By integration calculation, gasoline prices in China have raised 930 RMB/ton this year (135.8 USD/ ton.)
Source: China Research and Intelligence
If you’d like to copy or quote this article, please keep the source information
More details, please visit
http://shcri.com/reportdetail.asp?id=330
Bulk Vending Machines
www.shcri.com - On July 28th, 2008, China’s Development and Reform Commission issued a notice of lowering processed oil price — cut off 220 RMB/ ton (32.1 USD). The adjusted prices of gasoline and diesel were 6,510 RMB/ton (950.4 USD) and 5,770 RMB/ton (842.3 USD) respectively, equivalent to 0.16 RMB/L and 0.19 RMB/L from 0:00 on July 29th, 2009. This is the second price reduction of Chinese refined oil in 2009, and also the first reduction of refined oil price after the publication of the new price adjustment mechanism.
Market is the first to respond; in all parts of China, the wholesale price of refined oil has already dropped. Recently China’s wholesale price of refined oil dropped continuously; therefore the market profit space of wholesale markets has been greatly compressed. The wholesale prices of refined oil throughout China have been diving sharply; the average decline was between 500-600 RMB / tons.
Behind the cutting of prices is the weak demand. A few days ago, statistics of production and operation released by China’s largest processed oil seller — China Petroleum & Chemical Corporation shown that the whole sales volume for domestic oil products fell by more than 8% in the first half of 2009, with a decrease of almost 6 million tons; with the largest decline rate in retail sales volume of 12.77%.
According to “Oil Pricing Mechanism”, which published by Chinese government on May 8th, 2009, the adjustment of domestic oil products prices would be made when the average international market price of crude oil has been changing more than 4% for 22 days. On July 28th, the price in September crude oil futures contracts was about 67 USD/barrel on the international benchmark of oil prices in New York Exchange, and in the last domestic oil products price adjustment (on June 30th) the quote was about 70 USD / barrel, cut about 4%.
July 28th was just 22 working days from June 30th when China’s National Development and Reform Commission raised the price of refined oil. Monitoring data showed that as far as July 24th , in three regions such as Brent, Dubai, Cinta the change rate of average crude oil price have reached -5.41%, with a decrease rate of more than 5%.
China Development and Reform Commission announced that after this price cut, the Chinese domestic refined oil prices remained more than 7 USD higher than international oil prices, and much lower than the three types of reference prices. However, many people questioned that on June 1st and June 29th, China National Development and Reform Commission twice raised the price of refined oil prices by about 6% and 9% respectively, while at this time the price-cut range is only 4%, which means that the decline rate of domestic refined oil prices cannot keep up with that of international oil prices. Therefore it cannot change people’s questioning for “fast increase and slow decrease”.
The Change Events of China’s Refined Oil Price Since 2009:
? on Jan 14th, gasoline and diesel prices decreased by 140 RMB/ton and 160 RMB /ton respectively
? on March 25th , gasoline and diesel prices increased by 290RMB /ton and 180 RMB /ton respectively
? on June 1st , the price of petrol and diesel were increased by 400 RMB /ton respectively
?on June 30th , products such as gasoline and diesel oil prices both increased 600 RMB /ton
?on July 28th , gasoline and diesel prices reduced 220 RMB/ton respectively
Since China officially launched the fuel tax reform this year, oil prices have been adjusted for 5 times, the increase rate far exceeded the decline rate.
Take the ex-factory price of gasoline as an example, on January 14th and July 28th the price went down by 140 RMB/ton and 220 RMB/ton respectively, but on March 25th, June 1st and June 30th it was raised by 290 RMB/ton, 400 RMB/ton and 600 RMB/ton respectively. By integration calculation, gasoline prices in China have raised 930 RMB/ton this year (135.8 USD/ ton.)
Source: China Research and Intelligence
If you’d like to copy or quote this article, please keep the source information
More details, please visit
http://shcri.com/reportdetail.asp?id=330
Bulk Vending Machines
