Monopolies remain intact; what good does deregulating refined oil prices do?
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Recently, there has been a flood of news in the market suggesting that refined oil prices will be liberalized at an appropriate time, and industry players have high expectations for such a liberalization. However, given the highly monopolistic nature of the oil industry at present, even if the prices of refined oil products are fully liberalized, it will be difficult for the domestic refined oil market to become fully market-driven.
With the deregulation of refined oil prices, it will be difficult for other factors to cause changes in prices in the short term.
That’s indeed the case in the Chinese market: monopoly systems are easy to abolish, but inertial thinking is hard to eliminate.