China is set to reform its oil pricing mechanism in 20 days, making changes to the current price regulation on refined petroleum products.
Individuals close to Beijing's top decision-making circles are reported to have said that the new pricing measures are already laid out to replace the old ones.
A spokesman is reported as saying that the aim is to complete China's fuel tax reform and to encourage energy conservation and emission control, adding the caveat that consumers cannot expect a long-term downward trend in oil prices in China.
Up to now, China's crude oil prices are determined by global market forces but its prices for refined oil products have remained under government regulation.