MySheen

China will choose the opportunity to liberalize the price of oil products.

Published: 2024-09-19 Author: mysheen
Last Updated: 2024/09/19, The CPC Central Committee and the State Council recently issued some opinions on promoting the Reform of the Price Mechanism. The opinions clearly define the direction of price reform in six key areas, including improving the price formation mechanism of agricultural products, accelerating the marketization of energy prices, and improving environmental service prices.

The CPC Central Committee and the State Council recently issued "Several Opinions on Promoting the Reform of Price Mechanism." The opinions clarified the direction of price reform in six key areas, including improving the price formation mechanism of agricultural products, accelerating the marketization of energy prices, improving environmental service price policies, rationalizing medical service prices, improving transportation price mechanisms, and innovating price management for public utilities and public welfare services. The opinions are clear. By 2017, prices in competitive fields and links will be basically liberalized, and the scope of government pricing will be mainly limited to important public utilities, public welfare services and network-type natural monopoly links. By 2020, the market-determined price mechanism will be basically perfect, a scientific, standardized and transparent price supervision system and anti-monopoly law enforcement system will be basically established, and the price control mechanism will be basically sound.

Establishing mechanisms whereby energy prices are determined primarily by the market

Before 2009, China's refined oil prices were mainly controlled by the state. International oil prices all the way "triumph", domestic refined oil prices and international crude oil prices seriously "upside down", producers have no enthusiasm, middlemen hoard oil to rise,"oil shortage" occurred one after another, consumers criticized constantly. In recent years, China has improved the pricing mechanism of refined oil products twice in succession, the pricing mechanism of oil products has become more and more transparent, the market signals have become more accurate, and supply and demand have also stabilized.

Accelerate the marketization of energy prices. In accordance with the general idea of "controlling the middle and liberalizing the two ends", we will promote the reform of energy prices such as electricity and natural gas, promote diversified competition among market entities, steadily handle and gradually reduce cross-subsidies, and restore the attributes of energy commodities. We will choose opportunities to liberalize the price of refined oil products, straighten out the price of natural gas in an all-round way as soon as possible, accelerate the liberalization of natural gas sources and sales prices, orderly liberalize on-grid tariffs and sales tariffs other than public welfare, and establish a mechanism whereby energy prices are mainly determined by the market.

The transmission and distribution price and the selling price are separated in the formation mechanism, the transmission and distribution price is independently verified, and the selling price other than public welfare is formed by the market step by step. According to the principle of "allowable cost plus reasonable income", the transmission and distribution prices of power grid and natural gas pipeline network shall be reasonably formulated.

By 2020, basically straighten out the price comparison relationship of medical services

On the one hand, the common people constantly complain that the price of medicine is "falsely high", on the other hand, the price of doctor massage therapy can not even catch up with the complaint of "foot washing city" massage service. "The main reason for this phenomenon is that the price mechanism of medicine has not been straightened out, and the price of medical service fees in public hospitals is too low, which leads to the breeding of 'medicine to support medicine'." Wang Yongzhi, president of the China Price Association, said.

The opinions are clear, actively and steadily promote the reform of medical service prices, reasonably adjust medical service prices, simultaneously strengthen the connection of relevant policies such as prices and medical insurance, so as to ensure that the development of medical institutions is sustainable, the medical insurance fund can bear it, and the burden on the masses will not increase. Establish a dynamic price adjustment mechanism based on changes in cost and income structure, and basically straighten out the price comparison relationship of medical services by 2020.

The opinion requires that the market price adjustment policy for medical services in non-public medical institutions be implemented. The prices of medical service items in public medical institutions shall be subject to classified management, and the prices of medical service items with sufficient market competition and strong personalized demand shall be subject to market adjustment prices, among which the service items paid by medical insurance funds shall be reasonably determined through negotiation between medical insurance agencies and medical institutions. We will further improve the drug procurement mechanism and give full play to the role of medical insurance cost control. The actual transaction price of drugs is mainly formed by market competition.

Promote the pilot project of paid use of emission rights

Since 2007, China has promoted the pilot of paid use and trading of emission rights. At present, more than ten provinces have been selected as national pilot units, and some provinces have also selected some cities (counties) to carry out pilot projects. China's system of paid use and trading of emission rights is still in its infancy. Enterprises can reduce the pressure of energy conservation and emission reduction through market-oriented channels, so that enterprises that purchase emission rights can expand reproduction, and enterprises that sell emission rights can obtain financial support, so that energy conservation and emission reduction can become active behaviors of enterprises.

The opinions put forward that environmental protection taxation, fees and related service price policies should be used as a whole, economic leverage adjustment should be strengthened, the expenditure borne by enterprises for discharging various pollutants should be gradually higher than the cost of active treatment, and the enthusiasm of enterprises for active pollution control and emission reduction should be improved.

The opinions are clear. According to the principle of "pollution payment, fair burden, compensation cost and reasonable profit", the sewage treatment fee standard shall be reasonably raised. The urban sewage treatment fee standard shall not be lower than the sewage treatment and sludge treatment cost. Explore the establishment of an adjustment mechanism linking the treatment service fee allocated by the government to sewage treatment enterprises with the sewage treatment effect, and implement an incentive price policy for the resource utilization of sewage treatment.

Broadband network speed increase and cost reduction

As early as March 5 this year, Premier Li Keqiang of the State Council said when participating in the joint group discussion of the 12th National Committee of the Chinese People's Political Consultative Conference that when he visited some countries, he found that "the Internet speed of some developing countries is faster than Beijing." On April 14, at the symposium on economic situation hosted by Li Keqiang, in response to the response of the participants that "the traffic fee is too high", the heads of relevant departments were asked to study how to reduce the traffic fee and "make small profits but quick turnover".

The opinions require that telecommunication tariff behavior be standardized, broadband network speed be promoted and fees be reduced, and strong support be provided for the development of "Internet +". Guide and promote telecommunications enterprises to simplify tariff structure, effectively improve the cost performance of broadband Internet access and other services, and provide more preferential tariff schemes for urban and rural low-income groups.

It is strictly prohibited to use improper pricing to hinder competition in telecommunications services and disrupt market order. The opinion also stressed that we should strengthen the supervision of tariff behavior, clean up unreasonable expenses such as entrance fees, coordination fees and apportionment fees in the construction of broadband networks, and severely crack down on price violations.

According to Xinhua Agency

The government is not letting go of prices

Some people worry that if the price is released, will it enter the strange circle of "chaos, chaos, and death"?

"The government's pricing is 'one husband in power, ten thousand people can't open'. Now that prices have been liberalized, we must have the strength of thousands of troops to maintain market order, which puts higher demands on the government's supervision and ruling ability." said Li Ling, a professor at the National Development Research Institute of Peking University.

"Regulation itself is a reform, and it is a more difficult reform. It is not that the government is no longer accountable to the people, but is better accountable to the people. " Wang Yongzhi, president of the China Price Association, said that liberalizing government pricing is only the first step. After price liberalization, whether the formulation of market rules, technology, and quality standards can keep up, whether the government can effectively supervise and enforce unfair competition and monopoly behavior, and whether social forces can play an effective supervisory role are all issues that need to be solved urgently. According to Xinhua News Agency

 
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