A Study On Chinese Finished Oil Pricing Mechanism After The Entry Into WTO

According to our country's promise of WTO entry, Chinese finished oil market will be in an all-round way before Dec. 11^th in 2006. The permissions on free entries will not cause the competitions between companies, but also lead in a confrontation between systems and institutions. As of right now, the finished oil pricing and the whole petroleum pricing system is experiencing such a transition, from government pricing to international integration and eventually to open prices. The impact that this total openness will bring to our daily lives as well as our nation's petroleum security can be reasonably predicted to be unprecedented, considering the almost ending transition period following Chinese entry into WTO. As a miniature of a series of related issues requiring reflection on as we try to achieve the international integration and the complete opening of petroleum prices, the exploration on finished oil pricing mechanism reformation is providing new ways of thinking on globally, efficiently and in a sustainable way to make use of energy resources. This very exploration is at the same time providing forecasting reformation attempts and modes of choices for the in-depth opening of the huge Chinese market and integration into international economical system. So, a study on our country's finished oil pricing mechanism bears an extremely important theoretical values as well as crucial empirical guidance.This article is based upon the motivation of trying to actively get integrated into international system of petroleum pricing mechanism, and takes our country's finished oil pricing mechanism as the target study object, and used empirical analysis and comparison analysis to discuss the fundamental way of thinking in the reformation of our finished oil pricing mechanism ever since the entry into WTO. This article breaks down into six related parts. Part one introduces the background of study and briefed the current situation of our country's finished oil pricing mechanism. Part two applies related economical principles and made theoretical analysis on the deciding of finished oil market. Part three makes analysis on our current pricing mechanism and the exploration on reformation so far. Part four summarizes useful experiences on the oil price integration using comparison analysis with international finished oil pricing mechanism, and with consideration of the actual particular situation of our country after the WTO entry. Part five puts forward the government control options for perfecting the current finished oil pricing mechanism. At last a summary is given for the whole article and an outlook into future is outlined.