Pricing mechanism of refined oil product in China:an explanation based on econometric models

As China's oil consumption and dependence of foreign oil increased,the competition of international oil market becomes sharper.Price upside down,oil shortage and other serious problems happened successively.This article chooses the data from March 2007 to May 2010 to carry out an empirical analysis.Empirical results indicate that international crude oil prices and domestic price level are two major factors which affect the domestic oil price.In order to ensure the sustainability of energy consumption,the oil pricing mechanism must be consistent with macroeconomic cycle and macro-control policy,while integrated with the international crude oil market.