Research On The Government 's Function In The Reform Of China' S Oil Product Pricing Mechanism

Oil is the blood of industry. It is very important and non-renewable. In recentyears, China’s rapid social and economic development has increased its oilconsumption. In the meantime, China’s oil foreign dependence are also rising. China’srefined oil pricing mechanism has become the focus of attention.The reform of China’s refined oil pricing mechanism has gone through threestages: gradually moving from government pricing under the planned economicsystem to a market economy with the international pricing changes. In the course ofthis reform, the government functions play a crucial role. Especially in today, oil pricein China is still controlled by the government. The transform of government functionsis the key to the reform of the pricing mechanism of refined oil. At present thedomestic refined oil pricing mechanism is still not perfect, there are also manyproblems in pricing, such as pricing time lag, lack of international pricing ability. Theefficiency of the oil market remains not ideal. Therefore, the research of thegovernment’s function is the key to improving China’s refined oil pricing mechanism.In this paper, China’s current refined oil pricing mechanism and the currentgovernment function are the base of the research. The future positioning and directionof reforms in government functions are the goal of the research. By using price,supply and demand and monopoly theories, empirical analysis and theoreticaldiscussions, this paper has analyzed the history and the current state of China’srefined oil pricing mechanism, and also pointed out the role of government functionsin the oil pricing mechanism. And make it clear that the transform of Chinesegovernment functions is the key to the future reform of refined oil pricing mechanism.