China to adjust its refined oil pricing mechanism: Official

China is waiting for the right opportunity to adjust its refined oil pricing mechanism but disadvantaged groups will be subsidised, a senior official has said.

Reform of the refined oil pricing mechanism is closely tied to international oil price fluctuations, said Chen Deming, vice chairman of the National Development and Reform Commission (NDRC), the country’s top planning body.
However, the government has to consider people’s capacity to adapt to the changes, Chen said.

The purpose of the mechanism is to link the prices of refined oil products on the domestic market in China more closely to their international equivalents.

Chen said that to make the reform more palatable, the government will give subsidies to sectors such as food production, city transportation, agriculture and forestry. Low income groups will also receive allowances, he added.

Zee News