Exploring The Boundary Between Government And Market From The Refined Oil Pricing Mechanism

Market-oriented price reform is an important part of the reform, are alsoimportantcomponents of the transformation of government functions.18, adoptedat the thirdplenary session of the CPC Central Committee on several majorissues of deepeningreform decision made that any market pricing to the market,the Government withoutundue interference. This requires that we properly handlethe relationship betweenGovernment and market, usually through competitivepricing, we must resolutely to themarket. Governments need to do is provide public goods and publicservices as much aspossible, and adopt the necessary interventions to overcomemarket failures. Says muchof the refined oil pricing mechanism reform is toclarify the boundaries betweenGovernment and market on a piece of litmus paper.Refined oil pricing mechanism to reflect a country’s socio-economic situation of agiven period, its manifestation, the features are the same as the time of the political andeconomic systems are closely related. Experience China’s refined oil pricing mechanismby the Government pricing to the market evolving process, and this process is theprocess of China’s economic system from a planned to market and Governmentfunctions from the "Government control" to the "Government intervention" process ofchange.Judging from the mature market economies abroad, although the operation has itsown characteristics, but the vast majority of the country’s oil product prices are formedspontaneously by the market, Government generally used the indirect method on themarket price to carry out the necessary adjustments. At the same time creating a fairtrading environment, attention to the strategic petroleum reserve "reservoir" effect.States according to their own resources, strategic choices and specific conditionsimposed different tax policies. And show different characteristics are closely related toits own model of economic development and political systems.Degree of marketization of China’s current oil price mechanism is still not high,"pricing" model artificially separate the two markets at home and abroad, resulting indomestic oil prices did not reflect the domestic supply and demand and consumption structure nor the realities of an impact on world oil prices. In terms of refined oil priceregulation, Governments in China showed over and absence of coexisting phenomena.Over at the national development and Reform Commission, by reference to the spotprice of crude oil in the three places of "artificial formulas" set refined oil prices, directintervention in the market, seriously interfere with the normal operation of the marketmechanism. The absence in the market environment for fair competition and amonopoly enterprise has failed to effectively monitor, abuse of market dominance ofState-owned enterprises to highlight. Government preference for offside and overterritories, reflecting the lack of market. China oil product pricing reform has been aknown problem, and it is more a question of institutional, Government border failed toarrange the problem, which is the main reason oil product pricing reform16years failedto complete.After summarizing and drawing on the results of previous studies andmaturemarket countries proposed based on the experience of market-oriented reformofChina’s refined oil pricing mechanism by constructing service-orientedGovernmentand a Government ruled by law, clarify boundaries, real oil prices in the decision to letmarket forces. And transformation is the key to the role ofgovernment regulation bydirect transfer to indirect means to regulate the pricecontrols, mainly through taxadjustment, oil stocks and futures and other toolsto achieve indirect control and stabilizeoil prices in the role. Emphasis onpromoting administration according to law, improvethe energy system of the rule of law, creating a specification for petroleum marketpricing environment. Bydeepening the reform of administrative system and innovationof oil productmarket regulation, improve the level of supervision, to form aneffectivegovernment supervision system.Essence of marketing is to resource allocation adjustments, is the rearrangementofboundaries between Government and market. In the current market conditions,theGovernment completely liberalized oil market regulation is impossible andimpractical.Only a truly market-oriented price formation mechanisms andeffective governmentsupervision system and to obtain the refined oil marketsustainable development, accessto national oil strategic security.