The Study On Petroleum Pricing Mechanism Of China

Petroleum is a resource-based product, with the characteristics of non-renewable and the scarcity. It relates the development of the national economy and political stability. As China's rapid economic development, the demand of our country for petroleum will become increasingly large, while China's reserves of petroleum are limited, degree of depending on import is higher and higher, petroleum supply and demand become increasingly fierce. The analysis of the petroleum price fluctuations and thus further study of China's petroleum pricing mechanism, will provide support to China's petroleum pricing policy, as the same time, the analysis has important theoretical and practical significance to China's economy growth.This article analyses the petroleum market– influence factors of petroleum price - China's petroleum pricing mechanism, in order to make a deep research of petroleum pricing mechanism. First of all, it analyses the petroleum market structure. The result is that the petroleum is an international product, and the market structure of petroleum is oligopolistic. This is a new way to study the reason of price formation of petroleum. Then, it researches the factors to influence petroleum, and built a pricing model. After that, we analyses the situation about our petroleum market and pricing mechanism. Finally, based above researches, it gave five suggestions for improving our pricing mechanism of petroleum. The thesis is composed by five parts:Chapter one introduction firstly describes the background and the significance, then it introduces the theory and literature review of the article, finally, it shows the main thinking and analytical methods through the structure chart and points out the innovative points and shortcomings.Chapter two On the basis of studying current situation of forming system of the International petroleum price, the thesis carries on in-depth analysis to the structure of industry's market of petroleum from four aspects, eg. concentrations, entry and exit barriers, product differentiations and scale economies, defining structure of market of petroleum industry scientifically, Announce market relation characteristic of petroleum enterprise price behavior form deeply.Chapter three start from the composition of petroleum prices, analyses a great deal of factors of the price of petroleum with a large number of charts and data. The factors include the supply and demand of petroleum, the future of petroleum and so on. Then based on international petroleum prices, the article established a theoretical model. The model considered the specific situation of the domestic situation, and relevant parameters were also explained.Chapter four firstly studied the status of China's petroleum market, then from crude oil and refined oil analysis China's petroleum pricing mechanism, then, it tests the effectiveness of the reform by an econometric model and summarizes the conclusions of the empirical analysis. Finally it point out the shortcomings of China's mechanism of petroleum.Chapter five raises some suggestions on the development of China's pricing mechanism of petroleum in accordance with the conclusions in Chapter four. These proposals include the establishment of the futures market of petroleum, improving the system of oil price hedging and so on.