darkduck

China: Lots of Oil Price Speculation

Dear Mike, I don't believe that it's a good idea to raise oil price. It will impact the whole industry and consume. One prior objective for the goverment is to keep the inflation stable, not only PBoC, but also the US central bank; And the raise of oil price will cut down both the right consume(e.g. chemical industry) and the wrong consume(e.g. too many personal cars and goverment cars), which might slow the recovery and development of the whole industry. It's better to use vehicle oil tax instead. The oil tax can cut down the unreasonable booming oil demands from personal and goverment cars, improve the oil use effectiveness and efficiency.