Development and Reform Commission: The Current Product Oil Price Policy is Good for Social and Economic Stability

Xinhuanet Aomori, Japan, June 8th Zhang Guobao, deputy director of the National Development and Reform Commission of China, attended the China-India-Japan-Korea Energy Ministers Meeting, said that China's current oil price policy is conducive to social and economic stability.
In an interview with Xinhua News Agency reporters on the 7th, Zhang Guobao pointed out that since the reform and opening up, China has consistently adhered to the oil and refined oil price policy that has gradually shifted from planning to the market. Currently, crude oil prices have been fully integrated with the international market, and refined oil prices have also been planned. Connected. However, at a time when international oil prices are soaring, if we quickly push forward the price of refined oil products in line with international standards, it will certainly have a huge impact on industries such as agriculture, and its impact will be much greater than the impact of rising oil prices. Therefore, suspending the refined oil price reform will help stabilize the social economy.
In view of the international community’s view that the increase in energy consumption in China and India has led to soaring oil prices, Zhang Guobao stressed that although there are supply and demand reasons for the soaring oil price, the main reason is that a large amount of speculative funds has flowed into the oil futures market for speculative trading. The price of oil has seriously deviated from the actual price.
The mechanism of the five countries’ energy ministers meeting was established on the initiative of China. The first meeting was held in Beijing in December 2006. The meeting was held on the occasion of the G8 Energy Ministers' Meeting on June 7-8.

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