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Experts: Oil prices may go up further
By Hou Lei (chinadaily.com.cn)
Updated: 2009-07-01 17:35 The cost of oil may go up further despite Tuesday decision to raise prices. “According to the new pricing mechanism, China will adjust the prices of oil products frequently this year," said Niu Li, an expert with the State Information Center, a think tank in China. China raised gasoline and diesel prices by 600 yuan (about $87.8) per tonne as of Tuesday. It was the country's third price increase in 2009.
Yu Chunmei, an analyst from Shenyin & Wanguo Securities, also said that if a reasonable profit margin could be left for the oil refineries, prices of oil products might be raised by 400 yuan per tonne (US$59) at the end of July since China’s oil prices is still lower than the international prices. Under the pricing mechanism, China would consider changing the benchmark retail price of oil products whenever the international crude price go up or down by a daily average of 4 percent over 22 working days in a row. |
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