Private Oil Firms Oppose New Pricing Mechanism

(Beijing) -- Privately owned oil wholesalers and retailers are calling for central government policymakers to maintain current policies on oil pricing, opposing a possible reform that is aimed at shortening the price adjustment period to better reflect the prices changes on the international market, according to media reports.

China's oil supply is now monopolized by state oil giants. Zhao Youshan, chairman of Petroleum Circulation Committee under China's General Chamber of Commerce, was cited by China Business News on August 26 as saying that state firms are more reluctant to sell oil to private firms when prices are raised and they can make more profit by selling oil by themselves.