The current crude oil price adjustment mechanism has three major drawbacks

The current crude oil price adjustment mechanism has three major drawbacks Some experts believe that there are three major drawbacks to the current oil price adjustment mechanism: First, the “22 working days” period has a long valuation period, which leads to time lags in price adjustment, and long-term cycles also allow sufficient time for the domestic refined oil market to make expectations. As a result, the arbitrage behaviors in the refined oil market, such as speculation and oyster sauce, have increased; second, the “4%” amplitude adjustment will cause an imbalance between the price increase and the downward adjustment of oil prices over a period of time. The pricing mechanism has actually intensified the excessive rise in refined oil prices; It is the reference value of “Xinta” crude oil as a type of affiliated crude oil. In recent years, China’s crude oil imports from Indonesia have dropped significantly. From the perspective of crude oil imports, “Xinta” crude oil has not been too expensive.

Corresponding to this, the new oil price adjustment mechanism in preparation is expected to be adjusted in three aspects: first, shorten the pricing cycle, such as shortening 22 working days to 10 working days; second, adjusting the “4%” price adjustment standard. Adjusted to a more reasonable percentage; third is to change the type of crude oil affiliated, retain "Brent", "Dubai", remove "Xinta" and introduce new oil seeds. The overall intention of the reform is to gradually bring domestic oil prices into line with international oil prices.

But what about real integration? In the United States, Britain, Spain, and other countries, people do not always go to the streets. The difference is that their demands are the opposite of what we do: opposing the rise in oil prices in the market without limit, and calling for government intervention in oil prices. For the public, marketization or government regulation is not important. The important thing is that oil prices cannot rise sharply, and the price of oil rises unpleasant to the public.

When the international oil price dropped sharply, the domestic oil price rose against the market, causing the public to be deeply stimulated. Many netizens questioned the high oil price and oil price adjustment mechanism.

In fact, this time the Development and Reform Commission raised the price of oil is also a last resort. The rate of change in international crude oil exceeded the 4% red line as early as February 15, and the price adjustment window opened. However, taking into account factors such as holidays and Spring Festival, the Development and Reform Commission has not announced the price adjustment. Just as the National Development and Reform Commission prepared to increase oil prices, the price of international crude oil prices turned to diving, falling for two consecutive days on the 20th and 21st. Afterwards, the National Development and Reform Commission “hurriedly” announced the price adjustment on the evening of the 24th, becoming the first time in history that the NDRC issued a price adjustment order on a non-working day.

If the price of oil does not increase, the oil price adjustment mechanism that was previously formed will declare bankruptcy; if it is raised, the strange departure from the "outside drop will rise" will cause public dissatisfaction. The two sides weighed, and the NDRC chose to maintain the authority of the existing price adjustment mechanism. However, the drawbacks of the old price adjustment mechanism are also revealed.

However, this does not mean that it is wrong for us to move towards “market oil”. Under the existing mechanism of oil price formation, the government's intervention is still too much and the three parties are not satisfied: the oil companies complained that they had eroded their profits, the public complained of being kidnapped by the monopoly of high oil prices, and the government was exhausted but did not pay attention. This price rise could have been carried out before the Lantern Festival, but it was postponed for a few days due to factors such as holidays and Spring Festival. The result was kindly complained.

Full competition and market mechanisms to regulate oil prices cannot guarantee low oil prices, but they can reflect supply and demand more accurately, more accurately account for the costs and profits of oil companies, reduce monopoly profits as much as possible, and prevent “oil shortage” and “oil shortage”. Artificially disturbing the occurrence of market behavior. Therefore, the new oil price formation mechanism should be pushed as soon as possible.

What if the international oil price fluctuates significantly and seriously affects the important industries and important livelihood areas? The government can still intervene but the methods and ways of intervention can change. For example, without directly intervening in oil prices, financial subsidies can be given to industries and livelihood areas that are greatly affected by oil prices. When the money is spent at the bright spot, there are fewer distortions and complaints.

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