On the evening of the 17th, the Beijing Municipal Development and Reform Commission issued the Notice on Adjusting the Water Resource Fee and Wastewater Treatment Fee for Non-residential Residents in this Municipality. From November 20th, the non-residential water price in Beijing has been raised by RMB 0.4/m3. Prior to this, Shanghai, Tianjin, Lanzhou and other cities have all raised their water prices. Recently, the prices of resource products such as electricity and natural gas have all surged. Once again, it has aroused great attention from the society to the details of the resource price system reform.
In fact, any price fluctuation of resource products will affect the nerves of the entire society, and production companies are often the most sensitive. One of the main operations of Guizhou Kaisuan (Group) Co., Ltd. is the production of phosphate fertilizer and compound fertilizer. Wang Guowei, director of the development department, said: “The reform of the resource price system has a great impact on fertilizer companies. If it is feasible to reform the pricing mechanism of water, we must first ensure the living needs of low-income groups.†He believes that even if the price reform of resource prices brings about an increase in resource prices, the advantages outweigh the disadvantages. Fertilizer is an industry with significant economies of scale. When the price of resources increases, large-scale enterprises are more able to absorb the rising costs. Moreover, large-scale enterprises have stronger technological innovation capabilities. Enterprises can improve resource use efficiency and increase output ratio through independent innovation. It is possible to eliminate some of the backward production capacity and free up market space for large-scale enterprises.
The Secretary-General of Shanxi Province's Office of Promoting Methanol Fuels, Falling Lian Yan, believes that, as far as the current situation is concerned, the resource price system reform means price increases. Taking the adjustment of water prices as an example, the rise in water prices is expected to be very clear. With high water prices, on the one hand, it can constrain the expansion of production capacity in industries with large water consumption and heavy pollution. On the other hand, it can also promote the adoption of new technologies and new processes by enterprises to reduce consumption, and in particular, promote the reuse of water in enterprises. In this sense, the reform of the resource product price system will become one of the driving forces for energy conservation and emission reduction in China.
Although the advantages of the resource price system reform outweighed the disadvantages, the interviewees all thought that this reform was still an extremely complicated project, and the details of the success or failure should be taken with caution.
According to Falling Lian, the reform of the resource product price system needs to follow the direction of marketization. The prerequisites for reform are mature external market operations, the formation of large-scale products, and stable consumer groups. Currently, water, electricity, oil, and natural gas have these conditions, but new energy products such as alcohol ether fuels are currently not market-oriented. It is not yet suitable for a completely market-oriented price system.
Qi Lilian suggested that the reform of the price system of resource products must undergo a lot of in-depth investigations. Taking into account the differences in market levels and consumer targets, it is better to consider comprehensively the government departments, research institutes, universities and colleges, and enterprises or social people. A variety of opinions, brainstorming, so that the results of reform of resource prices system are conducive to energy conservation and environmental protection, but also conducive to production and life, do not catch one mistake. Looking at the refined oil products that have already taken the lead in completing the reform of the price system, the dynamic changes appear to be somewhat unsatisfactory. In the 11 months of this year, prices have been reduced twice for five times. Moreover, each small drop will usher in a more substantial increase. In this regard, Fallen Lian said: "I think that the current linkage mechanism of refined oil prices needs further summary. Looking at the frequent price adjustment this year, it is all about rising more and less, and oil prices have become a very sensitive society. problem."
Qi Lianxi said that it is particularly important to note that rising prices of basic products means a series of chain-price increases in the downstream. This series of effects is not a solution to the state's financial subsidies, and transitional subsidies are not a permanent solution. The joint venture also stressed that the current concern is whether the resource price system reform will be affected by the interests of certain monopoly groups. These monopoly groups cannot make a price increase as soon as there is a loss and the price is upside down. Instead, they should do more work from improving the technical level of enterprises, strengthening enterprise management, and increasing energy conservation and consumption reduction.
As for how to change the pricing system of various resources, HSE Senior Manager HSE of HSEQ Division of Yantai Wanhua Polyurethane Co., Ltd. stated: “The refined oil pricing mechanism has international oil prices as a reference, so the prices of water, electricity, oil, natural gas and other resources are reformed. There must be clear standards and descriptions, and a clear calculation method, and reference should be made to changes in the situation of related resources and dynamic floating rate should be adopted. The purpose of resource price system reform is to promote the efficient use of resources, so that efficient use of resources Businesses should be compensated, and companies that are inefficient use must take appropriate measures."
Wang Guowei believes that the marketization of resource product prices also requires a series of supporting adjustment measures. Taking the fertilizer industry as an example, if the upstream raw materials are marketized, the process of marketization of fertilizer pricing mechanisms should be further accelerated. Otherwise, resource prices have been rising all the way, and fertilizer companies have no way to survive. As for the chain effect of fertilizer price hikes on farmers and agriculture, it also needs comprehensive consideration by the government.
In fact, any price fluctuation of resource products will affect the nerves of the entire society, and production companies are often the most sensitive. One of the main operations of Guizhou Kaisuan (Group) Co., Ltd. is the production of phosphate fertilizer and compound fertilizer. Wang Guowei, director of the development department, said: “The reform of the resource price system has a great impact on fertilizer companies. If it is feasible to reform the pricing mechanism of water, we must first ensure the living needs of low-income groups.†He believes that even if the price reform of resource prices brings about an increase in resource prices, the advantages outweigh the disadvantages. Fertilizer is an industry with significant economies of scale. When the price of resources increases, large-scale enterprises are more able to absorb the rising costs. Moreover, large-scale enterprises have stronger technological innovation capabilities. Enterprises can improve resource use efficiency and increase output ratio through independent innovation. It is possible to eliminate some of the backward production capacity and free up market space for large-scale enterprises.
The Secretary-General of Shanxi Province's Office of Promoting Methanol Fuels, Falling Lian Yan, believes that, as far as the current situation is concerned, the resource price system reform means price increases. Taking the adjustment of water prices as an example, the rise in water prices is expected to be very clear. With high water prices, on the one hand, it can constrain the expansion of production capacity in industries with large water consumption and heavy pollution. On the other hand, it can also promote the adoption of new technologies and new processes by enterprises to reduce consumption, and in particular, promote the reuse of water in enterprises. In this sense, the reform of the resource product price system will become one of the driving forces for energy conservation and emission reduction in China.
Although the advantages of the resource price system reform outweighed the disadvantages, the interviewees all thought that this reform was still an extremely complicated project, and the details of the success or failure should be taken with caution.
According to Falling Lian, the reform of the resource product price system needs to follow the direction of marketization. The prerequisites for reform are mature external market operations, the formation of large-scale products, and stable consumer groups. Currently, water, electricity, oil, and natural gas have these conditions, but new energy products such as alcohol ether fuels are currently not market-oriented. It is not yet suitable for a completely market-oriented price system.
Qi Lilian suggested that the reform of the price system of resource products must undergo a lot of in-depth investigations. Taking into account the differences in market levels and consumer targets, it is better to consider comprehensively the government departments, research institutes, universities and colleges, and enterprises or social people. A variety of opinions, brainstorming, so that the results of reform of resource prices system are conducive to energy conservation and environmental protection, but also conducive to production and life, do not catch one mistake. Looking at the refined oil products that have already taken the lead in completing the reform of the price system, the dynamic changes appear to be somewhat unsatisfactory. In the 11 months of this year, prices have been reduced twice for five times. Moreover, each small drop will usher in a more substantial increase. In this regard, Fallen Lian said: "I think that the current linkage mechanism of refined oil prices needs further summary. Looking at the frequent price adjustment this year, it is all about rising more and less, and oil prices have become a very sensitive society. problem."
Qi Lianxi said that it is particularly important to note that rising prices of basic products means a series of chain-price increases in the downstream. This series of effects is not a solution to the state's financial subsidies, and transitional subsidies are not a permanent solution. The joint venture also stressed that the current concern is whether the resource price system reform will be affected by the interests of certain monopoly groups. These monopoly groups cannot make a price increase as soon as there is a loss and the price is upside down. Instead, they should do more work from improving the technical level of enterprises, strengthening enterprise management, and increasing energy conservation and consumption reduction.
As for how to change the pricing system of various resources, HSE Senior Manager HSE of HSEQ Division of Yantai Wanhua Polyurethane Co., Ltd. stated: “The refined oil pricing mechanism has international oil prices as a reference, so the prices of water, electricity, oil, natural gas and other resources are reformed. There must be clear standards and descriptions, and a clear calculation method, and reference should be made to changes in the situation of related resources and dynamic floating rate should be adopted. The purpose of resource price system reform is to promote the efficient use of resources, so that efficient use of resources Businesses should be compensated, and companies that are inefficient use must take appropriate measures."
Wang Guowei believes that the marketization of resource product prices also requires a series of supporting adjustment measures. Taking the fertilizer industry as an example, if the upstream raw materials are marketized, the process of marketization of fertilizer pricing mechanisms should be further accelerated. Otherwise, resource prices have been rising all the way, and fertilizer companies have no way to survive. As for the chain effect of fertilizer price hikes on farmers and agriculture, it also needs comprehensive consideration by the government.
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