Reform of the refined oil pricing mechanism

　Looking at countries where the pricing of refined oil products is fully market-based, it is clear that both marketization and regional pricing mechanisms allow companies to set prices independently based on market conditions. Economic tools such as taxes, interest rates, reserves, and subsidies are used to indirectly regulate domestic oil prices and influence the pricing policies of oil companies. The current domestic pricing mechanism for refined oil products still involves **setting prices**, and it also acts as a supervisor of those prices. To further develop this pricing mechanism in a market-oriented direction, it is necessary to change its **functions**. 　　Regarding this, the Guidelines state that it is necessary to standardize the **pricing procedures, and to encourage and support third parties in submitting proposals for price adjustments. Therefore, according to Zhuochuang Information’s analysis, it is not ruled out that in the future, the authority to adjust the prices of refined oil products could be delegated to third parties such as Xinhua News Agency. After all, refined oil is an important strategic resource as a basic energy source, and it is crucial for the survival and development of the national economy and people’s livelihoods. Moreover, China’s dependence on imported crude oil is currently approaching 60%, with a tendency to rise further, and the petrochemical industry itself has a monopolistic nature. Therefore, taking into account the country’s resource endowments and specific national conditions, a gradual approach is required to fully liberalize the prices of refined oil products in China.