Relaxation urged for Chinese price controls
Eric Watkins
Senior Correspondent
LOS ANGELES, Feb. 13 -– China's National Development and Reform Commission (NDRC) has submitted a proposal to the central government to relax price controls on oil products under a mechanism that would allow prices to fluctuate according to movements in the cost of crude oil.
The Chinese government has kept prices of oil products below international levels with price caps, squeezing margins for state refiners facing rising crude costs.
"The refining industry last year showed insufficient capacity and a supply squeeze," the NDRC said.
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