According to the news on the website of the national development and Reform Commission on the 29th, China's oil extraction ratio exceeded 70%. According to the current product oil price mechanism, the domestic product oil price is adjusted every 10 working days according to the international market crude oil price (the average price of the 10 working days before the product oil price adjustment day, hereinafter referred to as the international oil price). According to the relevant provisions of the measures for the administration of oil prices, when the international oil price exceeds the regulatory upper limit of $130 per barrel, the prices of gasoline and diesel will not be raised or will be raised less in principle.

In order to reduce the burden on downstream users and consumers and reduce the operating costs of the real economy, with the consent of the State Council, when the international oil price exceeds the regulation ceiling of $130 per barrel, the domestic product oil price will not be raised in a short term (no more than two months). Subsequently, if the international oil price exceeds the regulation ceiling of $130 per barrel for more than two months, relevant policies and measures will be defined in advance.

At the same time, in order to protect the production enthusiasm of oil refining enterprises and ensure the safe and stable supply of refined oil, the central government will provide periodic price subsidies to oil refining enterprises. The subsidy standard is the amount of gasoline and diesel prices that should be adjusted during the price adjustment period. Qualified oil refining enterprises can apply according to the process.

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