Development and Reform Commission: Excessive loss is the main reason for this adjustment

Xinhua News On June 20, Xu Kunlin, deputy director of the price division of the National Development and Reform Commission, visited Xinhua.com and exchanged opinions with the majority of Internet users on the adjustment of refined oil products and electricity prices.

Moderator: What are the backgrounds of netizens paying special attention to the rise in refined oil and electricity prices? What happens if you don't rise?

[Deputy Director of the National Development and Reform Commission Price Division Xu Kunlin]: Let me talk about refined oil. The refined oil was adjusted once in November last year. After the adjustment, the international oil price continued to rise, and the growth rate accelerated, reaching a maximum of US$138 per barrel. The spread at home and abroad further expanded. The inverted price of refined oil and crude oil is also becoming more and more serious. The reason why it is upside down is because China's crude oil and the international market are integrated. The price of refined oil is linked to the international crude oil price control mechanism, and the refined oil price It should be based on crude oil prices plus a certain processing costs. However, the current price of refined oil has not yet reached such a level. Because after the spread widened, a ton of oil in the refining process would have to lose about 3,000 bucks, so the local refineries were basically in the state of suspension of production and semi-production.

Not long ago, according to the instructions of the leaders, we specifically went to Shandong to do a local oil refinery research. Their operating rate last year was about 50%, this year is about 40%. If this continues, local refineries basically have to stop work. The pressure of market supply will fall on CNPC and Sinopec. As for the rapidly growing demand, the current two major companies' overall oil refining capacity is insufficient. The inability of local refineries to make full use of them will cause tight supply and demand in the entire market.

In terms of electricity, electricity is used primarily for coal, and the price of coal is continuing to rise. As the proportion of coal in power generation costs is relatively large, the rise in coal prices directly causes a serious loss to the power plant. So a proper adjustment should be made. The background is this.