Refined Oil, "differentiated" Market Chaos When The Crack

HC Chemical Network News, the oil giant thrustpricing formula reflects only the executive branch
into the media air waves. It is reported thatof the monopoly oil enterprises of compassion,
PetroChina, Sinopec two giants, with its marketbut with the status of domestic oil market is far
dominance, one hand below the pre-tax price offrom. On the one hand, international oil prices and
domestic refined oil price of 10% of export tosupply and demand depends on its own and close
overseas markets, on the other hand theto local speculation, and half of the self-relevance
domestic refined oil price hike sought. Suchof the domestic market is not very high; the
"differentiated" in oil prices is a lot to understand.other hand, the improved cost-plus formula is not
Fact, rebelled against the oil giant as the laws ofout of ideas, and the oil monopoly Enterprise
the market and the courage, administrative helprefining costs do not open, which is equivalent to
from the market under the strong, the fig leaf ofthe supply side has the right to the final price of
which is precisely the number of drafts of thethe remote control. Abnormal pricing formula for
refined oil pricing formula. As a result, theoretically,oil giant earned pours and then the overseas
to all the people all of the oil giant, whosemarkets to seek new support. Customs data
interests are diametrically opposed points.show China's March exports of oil and 264 million
Earlier, the oil giant on the excuse or cheap oiltons, up more than 70%. Of course, a higher
from overseas there are two main aspects: First,degree in the overseas market, oil prices will
the domestic "taxes" than foreign high tax pricesnever again have so-called formula guide, only the
can not be directly compared; Second, domesticRomans in the domestic giants to supply and
labor and logistics costs cheap to attract foreigndemand equilibrium price show people that may
investors to China as oil processing to. Tobe lower than the current domestic price.
Sinopec, for example, the processing of refined oilEssence, equivalent to not make full use of
to the export trade accounts for about 20% todomestic, and even quite scarce oil resources,
30%, thus pulled down the overall price of refinedmake the wedding dress for his country.
oil exports. Obviously, outside of the oil giantsBusiness is business, profit-maximization is the goal
such one-sided story is not "buy it." For theof enterprise management market. However, the
former, the media, inquisitive, open data and theoil giant is not an ordinary business enterprise,
tax ratio calculated conclusion, the current price ofwith its attributes of state-owned central
China's exports of gasoline and diesel thanenterprises, the real shareholders of all their
Shanghai's pre-tax wholesale price of gasoline andpeople at home. Just so they will be granted
diesel minimum discount of 8% to 12%. For theaccess to administrative support, but it also
latter, the industry believes that the three majormeans that the monopoly of state-owned
sources of China's oil imports were Saudi Arabia,enterprises must be the people's interests first,
Angola and Iran; and the major exporter of oil butotherwise the costs and benefits is not so, as
for the Association of Southeast Asian Nations,contrary to the basic principles of market
China, Hong Kong and Panama, import and exporteconomy. But by contrast, enjoy a monopoly of
region does not overlap a large area, how can athe oil enterprises in the long-term profits at the
large number of "processing" business down thesame time, high oil prices, domestic oil side have
export price of that?long been faced with the plight of high prices,
To refute the arguments of both complex, therestricted the control policy is intended to "boost
average consumer may not read too clear, butconsumption," the goal. More importantly, there is
their personal experience is that oil prices roseno competition monopoly oil prices, lost market
after another. As the "offer higher" vestedpower of innovation in the pursuit of economic
interests in oil and Sinopec has said that "theinterests under the blind expansion of production
pricing mechanism of corporate respect for thecapacity. According to the construction of the
government" will blame high oil prices to theproposed scheme, the industry is expected to
government.2015, China's refining capacity will reach 800 million
Indeed, China's refined oil market is currentlytons / year. According to gas, coal, diesel oil
subject to excessive administrative intervention indemand forecast three, in 2015 the domestic
the past and the current pricing mechanism is arefining capacity only needs about 550 million tons
classic. Under the existing price, the domesticyear, will be a serious surplus production capacity.
refined oil price hike should do. However, the