This afternoon, the National Development and Reform Commission issued a notice to improve the formation mechanism of refined oil prices and further promote price marketization.

The lower limit of the domestic refined oil price mechanism is 40 dollars per barrel, that is, when the crude oil price in the international market is lower than 40 dollars per barrel, the refined oil price is calculated according to the crude oil price of 40 dollars per barrel and the normal processing profit rate. When the price is higher than $40 per barrel and lower than 130, the domestic refined oil price will be adjusted according to this mechanism. If it goes up, it goes up, and if it goes down, it goes down.

When it is higher than $0/30 per barrel, appropriate fiscal and taxation policies shall be adopted to ensure the production and supply of refined oil in accordance with the principle of giving consideration to the interests of producers and consumers and maintaining the stable operation of the national economy, and the prices of gasoline and diesel shall not be raised or lowered in principle. That is to say, when the international oil price is higher than $0/30 per barrel, the domestic refined oil price may still be raised.

Song Qinghui, a famous economist, told Zhejiang Online reporter that the lower limit set by the National Development and Reform Commission can ensure China's oil self-sufficiency, facilitate the adjustment of energy structure and the development of new energy, and also ensure long-term energy security.