For the first time this year, the National Development and Reform Commission (NDRC) cut the benchmark retail price of gasoline by 0.22 yuan a liter and diesel by 0.26 yuan a liter on Oct 9. However, the reduction failed to win acclaim from the public, according to an article in Qilu Evening News. Excerpts:

The NDRC has taken public opinion into consideration and adjusted the prices, even though the move works against the country's oil pricing system, which prevents the commission from making adjustments unless average prices for Brent, Cinta and Dubai crude oil fall by 4 percent within 22 consecutive working days.

Even so, the public says the reductions are too little and too late.

First, the stipulation about the price of crude oil rising or falling "within 22 consecutive working days" means China is potentially slow to respond to changes in the global market. In fact, prices are far more likely to rise than fall within 22 working days. The stipulation also means domestic customers have no chance to buy cheaper fuel when prices fall in the global market.

Second, the oil pricing system considers only the average prices for Brent, Cinta and Dubai crude oil, without regard to New York's, which is the one that draws most attention among Chinese media and the public.

Third, as the renminbi gets even stronger against the dollar, it's natural for customers to feel it is unfair for them to suffer higher oil prices at home. Complaints also arise over the country's gas providers, who although buying at low prices, continue to sell at high prices in the domestic market, manipulating loopholes in the system.

Besides assessing and bettering the oil pricing system, the NDRC should break the monopoly of State-owned gas providers to facilitate a fair, competitive environment and benefit consumers.

(China Daily 10/12/2011 page9)