Is a more market-oriented oil pricing mechanism the Holy Grail to eliminate refiners' deficits and fuel further economic growth? Probably not.

The National Development and Reform Commission (NDRC) recently said that a more flexible oil pricing system has "stealthily" taken effect, designed to better tune local oil product prices to reflect the international one.

In reality, however, the authority still finds it hard to balance the interests of all parties using the new mechanism.

Why? The reason is self-evident: the new system is still subject to official mandates and artificial adjustments.

The NDRC has been reported to be seriously thinking of removing the price peg between local and international oil products and instead linking local prices to global crude oil prices.

The top economic planner had never officially confirmed the news until it was made clear this week that domestic oil products have long been priced on the average international crude oil price, plus costs and adequate profits for refineries.

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