Yang Langtao oil prices will be broken this year or will show a long-term upward trend 8

 Concern last week two news, one is oil price adjustment window will open

again next week, 97 # gasoline may be broken 8, a new record high. Another

is in the oil profits in the year 2010, 167.6 billion yuan, an increase of

30% compared to the previous year.

Moderator: side of the car is increasing the burden of consumers, while oil

prices are steadily increasing monopoly profits, then the domestic oil

prices are high, the current price adjustment mechanism is reasonable,

below please Veteran media Yanglang Tao detailed interpretation for us.

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Yang Langtao: domestic oil prices is not too high with the selected frame

of reference has a lot to . In absolute terms, relative to the majority of

European countries over ten yuan a liter price, our oil prices is not too

high, but the implementation of the European countries generally 100% to

200% of the fuel tax, fuel tax these countries to implement high are high-

welfare state, therefore not comparable. I think it is currently comparable

with China may be relatively strong in the U.S., China and the U.S. almost

the same fuel tax rates, dependence on foreign oil and close, and from the

retail price of view, China has surpassed the United States, therefore,

domestic oil I think the price is still high, if we take into account such

factors as income, then consumers in China than in Europe and the United

States is clearly under more pressure.

Moderator: For the price adjustment, many consumers feel that fast up, slow

down, then the current oil price adjustment mechanism is reasonable it?

Yanglang Tao: Actually, now the oil price adjustment due to the

participation of Development and Reform Commission, the introduction of

measures have been relatively mild, if in strict accordance with the

present price adjustment mechanism to implement, it may rise consumers will

feel higher frequency of price, considering inflation, prices are now

almost all price adjustment every time the window open a few degrees after

the adjustment. The current oil price is Brent, Dubai, Cinta three crude

oil prices as a basis, then calculate the CIF value, plus port charges,

processing fees, various taxes and a reasonable profit, international crude

oil price is supposedly transparent, and now the profit is transparent, but

later processing costs is an unclear, leading to oil prices, said the

number is how much. According to the analysis of experts last year, a

significant increase in oil profits due to rising international crude oil,

meaning that all industries in the country to endure the pain of inflation,

while domestic prices of several large oil but in fortune, Although

business is business is not wrong, but as a central rate not share the

corresponding responsibility, social responsibility, in any case this is

missing, but also that the current oil price adjustment mechanism is

defective.

Moderator: half past one price adjustment mechanism will also not change,

then for the consumer, may be more concerned about the trend of oil prices

this year?

Yanglang Tao: In the long run, oil prices is certainly upward, especially

as the global economic recovery and the United States the further

implementation of the quantitative easing policy, international oil prices

this year are likely to break in the second quarter hundred mark, it will

also be a corresponding rise in domestic oil prices, is likely to break 8,

which both for the domestic economy, or consumer acceptability, will be a

challenge.