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At the same time, Han Wenke also predicted that at the end of the year's Central Economic Work Conference, there will be more stimulus to release the economic policies. The current low demand for energy in China will gradually recover. It is expected that there will be signs of recovery in the second half of next year. It is certainly impossible to return to the level of double-digit growth in energy consumption every year three or four years ago."
Han Wenke revealed that the relevant government departments in China are working on measures to stimulate the economy and that oil prices are also a concern. To be sure, the refined oil prices are now set during periods of high oil prices, and refined oil products should be reduced in price.
According to the real-time linkage mechanism between refined oil prices and international oil prices, Han Wenke said that this mechanism will not be established in the short term. Because the subtext behind the linkage mechanism is the price one step in place, with the international oil prices. However, China is a developing country. What price is in line with international standards is not realistic.
At the press conference, Han Wenke also pointed out that China's energy price reform has two purposes. The first is to express the scarcity of energy resources, and the second is to straighten out the price relationship.
Han Wenke said that limiting the consumption of coal, oil and other energy sources and encouraging clean energy consumption is a long-term goal. However, it is outdated to reflect the scarcity of resources in the reform of energy prices. "The current global financial crisis is affecting the development of the world economy. If energy prices are substantially raised, it will be a big stick to our efforts to stimulate economic development. This is not desirable."
As for how to rationalize energy prices, Han Wenke said that prices will be determined by market forces, and in the formulation of specific prices, it is necessary to harmonize the relationship between countries, enterprises, and consumers. Han Wenke said: "Because of the high energy prices of petroleum and coal, domestic energy companies are operating at a loss, and the development of these industries is very important to the role of the national economy. How do we make the relationship between the country, the enterprise, and consumers harmonious, and the final price? Some of these changes may be transmitted to consumers, while others will require a few benefits for the country or business."
Development and Reform Commission Experts: Finished Oil Price is Not Realistic with International Standards
Han Wenke, director of the Energy Research Institute of the National Development and Reform Commission, said at the launch of the International Energy Agency's "World Energy Outlook" recently that no price mechanism for refined oil will be established in conjunction with international oil prices.