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Will Raising Processed Oil Prices Push Up the CPI?
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Last week, international oil prices soared to a 10-month high of US$73 a barrel, making China's processed oil price further below that on the international market.

 

The National Development and Reform Commission now faces unprecedented pressure to lift the price of processed oil, but it fears that it will push up China's CPI (Consumer Price Index), which has been standing high for the last few months.

 

It was said that China's two major oil suppliers, China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec) have already submitted applications to lift processed oil prices.

 

Informed sources said that the NDRC has already worked out an initial plan of price lifting, which will be issued within the month at the soonest.

 

According to Mr. Shan Weiguo, director of the China Petroleum Economic and Information Research Center, relevant departments will do a comprehensive review on lifting processed oil prices and take into consideration the potential implications to industries and the chain effect it might bring to the CPI.

For more details, please read the full story in Chinese (http://www.cnstock.com/jryw/2007-07/11/content_2319197.htm).

(China.org.cn July 11, 2007)

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