The fastest time to adjust domestic oil prices will occur between September and October

A number of domestic authoritative investment institutions have also forecasted at the same time that, at the time of the fall in international oil prices, the expectation that China’s government will adjust prices again in the second half of the year has increased. Some agencies said that the timing of the fastest price adjustment appears between September and October, and the price adjustment rate may not be higher than the 16% to 18% that were raised on June 20.

Recently, the research reports from various agencies in the report delivered to the buyer company have boldly predicted that there will be a high possibility of product price adjustment in the second half of this year.

Haitong Securities said in its report that there will be an increase in refined oil prices this year. “The government has recognized the seriousness of the inversion of refined oil and crude oil prices. The price adjustment in June showed the government’s determination and confidence in promoting refined oil reform.”

The company predicts that with the end of the Olympic Games and the volatility of crude oil prices (whether up or down), the government is very likely to increase refined oil prices during the year, which will improve the profitability of refinery companies.

Regarding the rate of price adjustment that may be implemented, various agencies also have different opinions, but the basic consensus is that they range from RMB 300 to RMB 500.

"If international crude oil prices fall back to US$95/barrel, China's refined oil prices will be brought into line with international prices. Now that crude oil prices are still more than 110 US dollars, once adjustments of 15% to 20%, it will solve the problem of convergence." The company’s economists said.

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