China to raise domestic refined oil price by early April

Shanghai, March 17 (Gasgoo.com) China is set to raise the retail price of domestic refined oil at the end of this month or early next month, by about 200 yuan ($29.3) per ton, an analyst with C1 Energy predicted, China Daily reported today.

International oil price has stayed above $80 per barrel since its rally in early February. If it stays at the current level for ten more days, the moving average will break 4%, the set limit for oil price adjustment, by March 26, and China's retail price of refined oil has to be raised, said the analyst.

A new oil pricing mechanism was introduced last year. Under the system, domestic refined oil prices are adjusted when the moving average of a basket of international crude (Brent, Dubai and Cinta) changes more than 4% over a period of 22 business days.

Since the adjustment in November last year, the price of China's finished oil has remained unchanged. The country adjusted domestic oil prices eight times last year, including five hikes and three cuts. The last adjustment was made on Nov. 10 (up 480 yuan per ton).

Annual oil consumption in China, now the world's largest auto market, has been increasing, second only to the U.S.  Since later last year, refiners such as PetroChina and Sinopec have ramped up crude oil processing to record levels.