This should help boost Bluesky's profits in the future:
SHANGHAI (AFX) - China will soon scrap controls over prices of aviation fuel
and reform the pricing of gasoline and diesel by linking them to prices of crude
oil, the official Shanghai Securities News reported.
The newspaper was citing an official with the National Development and
Reform Commission (NDRC), the country's powerful economic planning body.
The new pricing mechanism will more closely reflect crude oil prices, the
paper quoted Liu Shujie, the head of pricing department of the micro-economics
research institution under the NDRC as saying.
The newspaper also said that curbs in the sale of jet fuel are being
relaxed. Currently, airlines buy jet fuel mainly from the state-owned China
Aviation Oil Holding Co at a price set by the NDRC but other major oil companies
are being allowed to take a share of the market.
Liu also said the authorities will link wholesale prices of gasoline and
diesel on the domestic market to crude oil "indirectly".
The price changes will be more frequent than the current monthly
adjustments, he added.
Liu did not give a specific time for the reform or any indication of how
closely gasoline prices will follow global crude oil prices.
China has set caps on oil products on the domestic market to deflect
inflationary pressure and cushion consumers from the full effects of soaring
global energy prices.
But with crude oil at current high levels on global markets, the pricing
mechanism is cutting deeply into profits of the country's refineries.
China's Ministry of Finance said yesterday that it is offering a one-off
state subsidy of 10 bln yuan to the country's big oil refiner Sinopec Group,
which has been squeezed by mounting crude oil prices coupled with tight caps on
prices for refined oil products.
(1 usd = 8.1 yuan)
jqf/wk
Oil refiners and energy firms in china where the main gainers today dealers said. Lets hope FTO can now have a nice bounce up for the new year. I can't believe how low these prices still are, especially after the Executive director bought over 5m a few months ago @6.75p
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