China is ready to reform its oil pricing mechanism in 20 days, which covers mainly the current price regulation on refined petroleum products, reliable sources said.

Individuals close to Beijing's top decision-making circles told China Daily on condition of anonymity that the new pricing measures are already laid out to replace the old ones nationwide.

"The aim is to complete China's fuel tax reform and to encourage energy conservation and emission control," they said. "So despite the short-term ups and downs in oil prices in the global market, one cannot expect a long-term downward trend in oil prices in China."

Up to now, China's crude oil prices are determined by the global market forces but its prices for refined oil products have remained under government regulation.

(China Daily November 20, 2008)