China Petroleum & Chemical Corp.
,
the nation’s largest refiner, said revising the country’s fuel prices more
frequently than the current 22 days would curb speculation that leads to
hoarding of gasoline and diesel.
The government is considering a proposal from refiners
including China Petroleum, also known as
Sinopec
, to
review the current rule of altering gasoline and diesel prices when crude oil
changes more than 4 percent over 22 days, said a company official, who declined
to be identified because he isn’t authorized to speak to the media.
The government may change the period or revise the
formula to better reflect local fuel demand and supply,
China National Radio said Jan. 28, citing
Zhou Wangjun
, a
deputy director in charge of pricing at the National Development and Reform
Commission. No further details were provided in the report.
Li Pumin
, a
Beijing-based spokesman at the commission, the country’s top economic policy
planning agency, didn’t answer calls to his office today.
China
experienced temporary fuel shortages last year as demand rose and some
retailers hoarded oil products on speculation the government would raise
prices, Xinhua News Agency reported in May.
China
,
the world’s second-biggest oil user, increased prices of gasoline and diesel by
as much as 8 percent on Nov. 10, the eighth adjustment in 2009. Refiners led by
Sinopec and
PetroChina Co. have benefited from the fuel pricing
mechanism, which also takes into account taxes and their profit, the commission
said in August.
(
from Bloomberg)