Domestic refined oil price declined for first time in 2012 (Source: People. net)

◆The National Development and Reform Commission made an announcement that China would embrace its first decrease in the prices of gasoline and diesel oil by RMB 300 and 310 per ton respectively, which further referred to RMB 0.24 and 0.26 per litre, since May 10^th, 2012.

◆Under the pressure from the international oil market, domestic oil prices finally declined, however, the reform of oil pricing has not yet been put into practice as expected for the two following reasons. Firstly, as the crude oil price has been decreasing these days, China has to hold a wait-and-see attitude towards the following situation. Secondly, part of the new terms in the new proposal have to be checked again.

◆Decline of the oil prices would benefit many related sectors, for example, it may reduce the transportation cost so as to revitalize the retailing industry, autobody industry and also curb the domestic inflation by reducing agriculture cost to a certain degree. Nevertheless, this practice will run counter to the manufactures namely CNPC, Sinopec by narrowing down their profits.

◆Other news

China launched its first exploitation in the South China Sea .

Official statistics reveal that China ’s degree of dependence upon foreign oil has been up to 56.7%.

India plans to cut down20% oil import from Iran under the pressures from the U.S.A.

It is revealed by Saudi Arabia that surplus of crude oil has reached to 1.5 million barrels per day in the global market.