China cuts fuel prices unexpectedly!

China cuts fuel prices unexpectedly!
Dec 19, 2008 03:28
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: offline	China declares that the cost prices of petrol, diesel oil and kerosene will be lowered from December 19th. Meantime, the retail prices of petrol and diesel oil per litre will be cut by 0.91 and 1.08 Yuan. This is totally unexpected. Just a few days ago, an official said that the fuel prices would be cut next year. No one expected that the prices cut could come so fast. The consumers are very happy to hear this news. They have been complaining about this for long. Now, the fuel prices come down quickly. A taxi driver said that the price cut of 0.91 yuan can save 900 yuan for him per month. I am still trying to understand why China cut the fuel prices unexpectedly. Does this mean that China just revises its oil pricing system to let it pegged with the global market? On the other hand, the international oil prices have slumped below 40 dollars per barrel. On the New York Mercantile Exchange, it settled at 36.22 dollars a barrel. OPEC has announced to cut the output of 2.2 million barrels per day starting January 1, 2009. It aims at stablizing the plunging oil prices. But now it seems that this plan didn't work well.

Dec 19, 2008 03:28

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: offline

China declares that the cost prices of petrol, diesel oil and kerosene will be lowered from December 19th. Meantime, the retail prices of petrol and diesel oil per litre will be cut by 0.91 and 1.08 Yuan.

This is totally unexpected. Just a few days ago, an official said that the fuel prices would be cut next year. No one expected that the prices cut could come so fast.

The consumers are very happy to hear this news. They have been complaining about this for long. Now, the fuel prices come down quickly. A taxi driver said that the price cut of 0.91 yuan can save 900 yuan for him per month.

I am still trying to understand why China cut the fuel prices unexpectedly. Does this mean that China just revises its oil pricing system to let it pegged with the global market?

On the other hand, the international oil prices have slumped below 40 dollars per barrel. On the New York Mercantile Exchange, it settled at 36.22 dollars a barrel. OPEC has announced to cut the output of 2.2 million barrels per day starting January 1, 2009. It aims at stablizing the plunging oil prices. But now it seems that this plan didn't work well.

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