This report unveils the pricing elements in China's gasoil, gasoline, jet kerosene and naphtha pricing mechanisms. Based on intensive researches on these pricing parameters, it gives pricing modeling for domestic oil products with gasoil as an example.
Table of Contents
1. China's current pricing mechanism
1.1. Executive summary of current NDRC pricing mechanism
1.2. Pricing elements apparently defined
1.2.1. Taxes and duties
1.2.2. Average processing cost
1.2.3. Regulated ceiling prices sold to distributors
1.2.4. Regulated retailers’ expense and margin
1.2.5. Trigger mechanism for price change
1.3. Pricing elements partially defined
1.3.1. Crude oil base-price quote
1.3.2. Port, handling and storage fees
1.3.3. Crude oil inland transportation charge
1.3.4. Reasonable Profit
1.4. Pricing elements not defined
1.4.1. Crude oil base-FOB to CFR calculation
1.4.2. Crude oil base-storage service related loss, and production loss
1.4.3. Crude oil base-taxes and duties
1.4.4. Prices difference between ex-works and wholesales prices
1.4.5. Transportation and distribution discounts in the target markets.
1.4.6. Pricing possibility under high-crude scenario
2. Prices differences
2.1. Regional and provincial differences in regulated prices
2.2. Prices difference between real and regulated wholesale price
2.3. Provincial discretionary adjustments
3. Review of the past mechanism and conditions
4. Government subsidies paid to Sinopec and CNPC
5. Recently proposed stabilization fund
6. Product packaging
7. Benchmark grades and other premium grades
7.1. Gasoil grades and pricing mechanism against benchmark grades
7.2. Gasoline grades and pricing mechanism against benchmark grades
8. Gasoil pricing modeling and mechanism implementation
9. Jet/Kerosene pricing mechanism
10. Naphtha pricing mechanism
Appendix:
A.1. Sales Channel of Sinopec, CNPC and JV refineries
A.2. Understanding of "Notice of NDRC on Printing and Distributing the Measures for Oil Price Management (For Trial Implementation)"
A.3. NDRC document on October 7 2008 the retail price of Beijing standard diesel experienced regional rise
A.4. Extract from Consumption Tax Law
A.5. Extract from Tax Law (Education Supplementary Tax)
A.6. Extract from Tax Law (Urban Maintenance and Construction Tax)
