Development and Reform Commission responds to six big questions about oil prices

Xinhua Beijing, July 10, nearly two months, in the international oil price fluctuations in the situation, the State departments in accordance with the formation of oil price mechanism, the corresponding adjustment of domestic product prices.　　Because the oil price is affected by the international oil prices, the domestic tax burden, the pricing mechanism and many other factors, the society is specious, the comments and views of the erroneous claims are more, which causes some people's misunderstanding.　　In this regard, 10th, the National Development and Reform Commission Price division responsible for the social concerns of the 6 major issues, answered the reporter's questions.　　The price of refined oil at home and abroad according to the Development and Reform Commission, Deputy director of the price division, Hucunlin, compared with the United States, China's gasoline tax-containing retail price is higher, but does not include tax prices are basically equivalent. He said that taking the Beijing No. 93rd gasoline as an example, at present, the tax-containing retail price of No. 93rd petrol is 6.37 yuan per litre (including VAT 0.925 yuan/liter, excise tax 1 yuan/liter, urban construction education additional 0.193 yuan/Liter), excluding the tax price of 4.25 yuan per litre; Washington, D.C., USA　　In New York and California, the petrol-containing tax retail price is 5.21 yuan per litre, 5.18 yuan and 5.41 yuan, excluding tax prices of 4.75 yuan, 4.20 yuan and 4.41 yuan respectively. Hucunlin said, compared with most European countries, China's gasoline tax-bearing prices are much lower.　　At the beginning of July, the national average maximum retail price of No. 93rd gasoline in China was 5.91 yuan per litre (including VAT 0.859 yuan/liter, consumption tax 1 yuan/liter, urban construction education additional 0.186 yuan/Liter), the United Kingdom, France, Germany, Italy and other major European countries common gasoline tax retail prices generally in the 9 yuan-14 yuan per litre.　　Compared with these countries, China's tax-free oil prices are slightly lower than those countries, China's 93rd gasoline does not contain the tax price of 3.87 yuan per litre, the above-mentioned European major countries gasoline tax price is basically 4 yuan per litre-4.9 yuan. He said the difference in price levels at home and abroad is normal. First, the cost of crude oil purchase is different. The United States is the first oil-producing country, the early years of oil production self-sufficiency, and later through the large multinational oil companies in overseas occupy a lot of low-cost resources, crude oil purchase price is relatively low, the United Kingdom is the same. And most other major countries in Europe and Asia, oil resources are scarce, and as a successor, the overseas oil-seeking cost is relatively high, crude oil purchase price is much higher than the United States and Britain and other countries. Second, the tax burden is different.　　Tax reflects the government's macro-control intention and policy orientation. He stressed that at a deeper level, the factors behind oil prices are hard to quantify.　　The U.S., for example, uses the dollar's special status to have a big say in oil pricing (in dollar terms).　　Experts say the U.S. oil price is low and does not include military spending for oil resources.　　In addition, the low oil price low tax policy in the United States led to the prevalence of large-displacement cars, the U.S. auto industry in the aftermath of the financial crisis, because of the lack of competitiveness of the plight of the United States, has a strong warning role. He said that China's lack of oil resources, the degree of external dependence has increased to 51%, objectivelyIf the policy of low tax or low price cannot be implemented, it is necessary to start from the angle of saving resources, using price and tax lever to promote oil resource saving and energy saving and emission reduction. If China's per capita oil consumption reaches the level of the United States, the world's oil can not meet China's oil demand. Therefore, China must guide the rational consumption of oil from the policy guidance as soon as possible and promote the resource saving.　　　　The current oil price and tax policy reflect this policy intention to some extent. How to view the profits of oil and petrochemical industry is a high-risk industry.　　In the 80 's, oil prices in the long run, the international market oil prices once fell below $10 a barrel, some small oil companies have collapsed or been merged, oil companies are facing great operating pressure. In the past two years, oil prices have risen sharply, and the profits of oil companies have increased substantially.　　As China's oil prices have been properly regulated, at the same time the upstream domestic crude oil levy special income, therefore, PetroChina, Sinopec's profit level is not high compared to foreign oil companies, last year because of the overall loss of refining operations, the two major companies to achieve profits or even negative growth. Last year, the total assets of trillions of PetroChina and the total assets of more than 700 billion yuan Sinopec respectively to achieve profits of 161.8 billion yuan and 24.2 billion yuan, down 16% and 71% than the previous year.　　These gross profit figures look large, but their margins are low relative to their huge assets. Hucunlin pointed out that the guarantee of oil supply is a long and arduous challenge in the process of China's economic development and modernization. PetroChina and Sinopec are state-controlled enterprises, shouldering the responsibility of safeguarding the national oil supply.　　The state's share of the profits in two enterprises is mainly used for further investment, oil exploration and development and the enhancement of oil supply capacity. In recent years, the two companies used in oil and gas exploration and development, the construction of oil refining capacity of the capital increased year.　　2008, PetroChina, Sinopec two companies for this part of the capital investment amounted to 184.5 billion yuan (including exploration and development investment of 157 billion yuan, oil refining construction investment of 27.5 billion yuan) and 70.1 billion yuan (of which exploration and development investment 57.6 billion yuan, oil refining construction investment 12.5 billion yuan). In response to the issue of domestic oil production profits, Hucunlin said, in order to regulate the oil industry and non-oil industry interests, March 15, 2006, the country decided to introduce oil special proceeds of domestic oil, when the price of crude oil rose to more than 40 dollars per barrel,　　To collect some of the excess profits from the crude oil exploitation enterprises, the collection ratio is 20%-40%, which is mainly used to subsidize the difficult groups such as grain farmers, forestry, fishery, urban public transport and rural road passenger transport, and to support the development of oil-saving and petroleum substitution industries. 2006-2008, the two major companies to pay a total of special income of 160 billion yuan and 53 billion yuan.　　　　Therefore, the society thinks the domestic crude oil cost is low, the oil company windfall profits The argument is one kind of erroneous understanding. The wholesale price downgrade illustrates what the domesticAfter the price of oil has been raised, some regions have lowered wholesale prices.　　In this regard, some people in the community mistakenly believe that the market to reduce wholesale prices, is not recognized by the government's price adjustment measures, that the perfect product pricing mechanism problems. In response, Hucunlin said, the new mechanism stipulates that domestic steam and diesel prices to implement the highest retail price and the highest wholesale price management, enterprises can be based on market supply and demand to determine specific wholesale prices or retail price. When the market exceeds demand, the actual sales price of the enterprise may be lower than the national ceiling price.　　When the market is in short supply, the top retail price and the highest wholesale price will play a role in preventing prices from rising unreasonably and protecting the interests of consumers.　　For some time, domestic market price of steam and diesel is lower than the national limit price, which also reflects the domestic oil price reform towards the market direction took a welcome step. According to the new mechanism, "the retail benchmark price of steam and diesel is allowed to move up and down to the highest retail prices, no longer set the lower price limit, is to encourage the operators to carry out price competition, better reflect the market supply and demand situation, consumers can get more benefits."　　"he said. Whether the current price mechanism conforms to the national conditions Hucunlin said that the reform of our refined oil price is moving towards the market-oriented goal. In the long run, the price of refined oil will be formed by market competition.　　At present, because the market competition is not enough, the market system is imperfect, the social capacity is relatively weak, the price of refined oil still by the government to carry out the necessary management. December 19 last year, the State introduced and formally implemented a new oil price formation mechanism.　　The new mechanism adheres to the orientation of marketization, not only reflects the international market oil price change and enterprise production cost, but also considers the domestic market supply and demand relationship, not only reflects the scarcity of petroleum resources, but also takes into account the capacity of all aspects of society. He stressed that in order to avoid volatile oil prices in the international market caused by the frequent adjustment of domestic oil prices, the new mechanism for reference to the international market crude oil price is a continuous 22 working days related to the moving average price of oil.　　That is to say, the international market some kind of crude oil one day or some days the price change is big, the domestic oil product price will not adjust, only when the international market related oil species 22 consecutive working days move average price change exceeds 4%, the country may adjust the domestic oil price accordingly. On June 30, for example, the reference to the benchmark crude oil at the time of 68 U.S. dollars per barrel, compared to the June 1 price rose by 3.7%; But the reference to the benchmark crude oil 22 working days moving average price of 67 U.S. dollars per barrel, compared to 22 days of June 1 moving average price rose 17.2%.　　As a result, the state has controlled the increase in domestic oil prices, the increase of less than 10%.　　As of July 7, the reference to the benchmark crude oil time of 62 U.S. dollars per barrel, compared to the date of June 30, the price fell 10.6%, but 22 working days moving average price is still more than 67 U.S. dollars per barrel, coupled with the country in the last price increase when the appropriate regulation, the price has not been adjusted. To straighten out the price is conducive toHucunlin said that energy-saving emission reduction and environmental protection are the basic state policies that should be adhered to in China's economic development process.　　At present, the State adopts a series of policy measures to stimulate consumption and expand domestic demand in order to maintain the sustained and healthy development of national economy.　　He said the above measures are consistent with the policy orientations to promote energy conservation, environmental protection and economic restructuring, and to change the way the economy grows, and that economic growth must not be sacrificed at the expense of the resource environment. He stressed that the recent three consecutive countries to improve the price of oil products, is based on the completion of the refined oil price mechanism of the normal operation of the results.　　Although the short term will have a certain impact on the downstream oil industry, but long-term conducive to the promotion of resource conservation and energy-saving emission reduction, conducive to the transformation of economic development mode, to maintain the sustained and healthy development of the national economy.　　Whether domestic oil prices "go up and down slowly" Hucunlin said that the social circulation of domestic oil prices to catch up fast, the idea of slow down is a misunderstanding, in fact, domestic oil prices in the longer period of time has been lower than the international market.　　He said that in order to reduce the international market oil prices, especially the impact of abnormal speculation on the domestic market, 2003 began to regulate the price of oil products, oil prices are often only one or two times a year, domestic oil prices are far less than the international market gains.　　Last year, the international market oil prices rose to a barrel of 147 U.S. dollars a high, but the domestic oil prices never reached this height, last year, June 20 after the domestic product prices, domestic product prices are actually equivalent to the international market crude oil price of 83.5 U.S. dollars per barrel.　　December 19 last year, the country introduced oil prices and tax reform program, cut domestic oil prices, domestic oil prices and the international market at that time the level of crude oil prices are basically consistent, are about 45 U.S. dollars per barrel. January 15 this year, the country again adjusted the domestic oil prices.　　After the international market oil prices continued to climb, domestic product price adjustment Reference International market crude oil prices from the middle of January to about 40 U.S. dollars rose to 68 U.S. dollars, the cumulative rise of up to 70%, while the domestic oil prices after three increase after the cumulative gain of not more than 25%. He said that the current domestic oil prices corresponding to the crude oil price of 60 U.S. dollars per barrel, considering the end of last year's oil prices and tax reform to improve the gas and diesel consumption tax unit tax to occupy about 20 dollars space factor, using the same caliber comparison before the reform, the domestic oil price of the actual corresponding crude oil price of 80 U.S. dollars per barrel, The highest level of domestic oil prices in the same period last year is basically equivalent.