Guangdong PetroChina is considering lowering oil prices in the wake of the oil pricing cut announcement by Beijing PetroChina on March 8, Guangzhou Daily reports.

Gasoline Station of PetroChina [File Photo]

An insider said that, the cutting scheme has been planed; gasoline and diesel oil could drop by 0.06 RMB, and specific prices will be decided by gas stations.

According to China's Development and Reform Commission, oil retailers could adjust prices up and down by around 8% of the national standard. A new pricing mechanism will take effect in 2007, calculating oil prices based on the crude oil price of Boolean, Dubai and Minas, rather than the refined oil pricing of New York, Singapore and Rotterdam.

Experts said that the new mechanism will guarantee oil refinery factories no longer suffer a deficit, and consumers will become the final beneficiaries.

So far, four over 10-million-ton oil refinery factories are planned to, or already have been built in Guangdong. Refined oil will be increasingly supplied.

Editor: Yan