Monopoly under the market price
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Now that China's energy prices are low, what is the basis? Whether the price of a commodity is high or low can only be known by comparing the prices of similar products with others. If the price of such a commodity is the monopoly price of one or a few manufacturers, then people simply cannot know whether the price of this commodity is high or low. The common sense of economics tells us that there is no market price under the monopoly system, and there are only unilateral pricing of the monopoly, and it is even more difficult to “truely reflect the market supply and demand relationshipâ€. At present, some of the major domestic energy prices are basically such a monopoly price of the supplier. The price formation is basically unilaterally priced by the supplier, not what the market price is.
It is said that China’s energy prices are low, perhaps compared with international oil prices. In the past two years, the international oil price is a bit high, including the bubble factor of international political and speculative speculation. It is not a real market price, and some countries are now The proposal to oppose oil profits shows this. Moreover, in order to ensure the stable operation of the domestic economy, China’s oil pricing mechanism has not fully complied with international standards. Therefore, simply saying that China's energy prices are low is not correct.
From this point of view, to say that we must change the current low energy prices is nothing more than to find a basis for price increases, not to mention what is "market reform." The real marketization of China's energy prices can only come after breaking the monopoly, rather than before.