Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

China Examines Its Oil Pricing Strategy


In a boon to refiners, Chinese gas prices rise short-term as the government looks for better ways to work with Chinese oil companies and domestic consumers.

A Complex Issue
Fuel prices are still controlled by the government, so the end-user prices still don't fully reflect market conditions. Premier Wen Jiabao has said that the government may allow the CPI to rise by as much as 4%, where its current rate is about 2% now.

Ever wary of inflation for consumers, Beijing will likely offer subsidies, according to the official news agency Xinhua, if global crude oil prices continue to rise. The increases will help refiners some, but will not completely take away the pressure, as the Chinese majors are expected to continue to lose money in their refining segments.

So China has maintained its preferential option toward being more consumer-sensitive than oil company-sensitive on the fuel-price issue. But it is making some strides toward letting more of a market force dynamic trickle into its economy.

Editor's Note: This article was written by Jim Trippon of China Stock Digest.

Below, find some more great investing and trading content from MoneyShow:

2 Less Volatile Oil Plays

Nestle Builds Momentum in China, 45 Cents at a Time

Brent, West Texas, and Now Dubai?

Twitter: @TopProsTopPicks
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos