Development and Reform Commission Announces Adjustment of Refined Oil and Electricity Prices
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Since July 1st, the average national sales price has increased by 2.5 cents per kilowatt-hour. The price of liquefied gas and natural gas will not be adjusted.
The Development and Reform Commission pointed out that in the recent period, oil prices in the international market have continued to rise significantly, especially since the middle of February this year. The contradiction between the domestic product oil price and the crude oil price inversion has intensified, and the company’s processing and import losses are serious. Most local refineries are in the state of production suspension and semi-discontinuation, and the contradiction between supply and demand is outstanding. In order to gradually straighten out the price relationship, ensure the supply of domestic refined oil and promote the saving of petroleum resources, we decided to appropriately increase the price of refined oil.
The Development and Reform Commission stated that in order to reduce the impact of price adjustments on people's lives and control the chain reaction of price adjustments, the following comprehensive supporting measures were adopted for the increase in the price adjustment of refined oil products: (1) For grain farmers, fisheries (including offshore fishing), Forestry implements financial subsidies. Among them, on the basis of the direct subsidies for grain farmers that have been increased this year, an additional 5 yuan per mu will be subsidized; (ii) Public finance for urban public transport and rural road passenger transport (including inter-island and rural waterway passenger transport) Subsidies and transportation prices will not increase; (3) From July, the urban minimum living security subsidy will increase by 15 yuan per person per month, and rural areas will increase by 10 yuan; (iv) The impact of refined oil price adjustments on the taxi industry will increase through fiscal consolidation. Subsidy, further cleaning up the unreasonable burden of settlement, the price will not be adjusted temporarily; (5) No adjustments will be made to the prices of liquefied gas, natural gas and railway passenger transport. All kinds of subsidy funds will be allocated to the central government on a daily basis.
The Development and Reform Commission also made it clear at the same time that the current tariff adjustment will not adjust electricity prices for rural and urban residents and electricity prices for agricultural and chemical fertilizer production, and Sichuan, Shaanxi, and Gansu provinces will not adjust electricity prices in counties (cities) severely affected by the earthquake disaster.
The Development and Reform Commission also pointed out that the current level of coal prices is relatively high. In order to prevent the coal and electricity prices from increasing rapidly, from now until December 31, 2008, temporary price intervention measures will be implemented for coal for power generation throughout the country. During the period of interim price intervention, the mining price of coal used for power generation by the national coal production enterprises shall not exceed the actual settlement price on June 19, 2008.
The National Development and Reform Commission requested relevant oil, electricity, and coal companies to strictly implement the national pricing policy, strengthen production and transportation, and ensure market supply. The competent pricing departments at all levels must take various measures to strictly control the impact of refined oil and electricity price adjustments on the market, strengthen the supervision and inspection of the implementation of refined oil, coal, and electricity prices and market prices, and prevent price hikes; The national price policy, as well as behaviors such as creating rumors, confusing people, hoarding, and so on, disrupt the market price order and maintain market stability.