OREANDA-NEWS. December 07, 2011. Although China's oil consumption growth will fall during the 12th five year plan period, China's oil import dependence ratio will surpass 60% by 2015 due to the fact that domestic oil output is getting stable, according to the China Energy Report 2011 released by the China Energy Research Society (CERS).

The report shows that Chinese economy will still witness rapid internal growth at an average rate of around 9% during the 12th five-year plan period. In addition, private cars will be even more popular and industrial consumption will grow continuously. Thus, China's oil consumption will keep rapid growth. The oil consumption growth is expected to be about 4% in the 12th five-year plan period, and the oil consumption will hit 500 million to 520 million tons by 2015.

This means that the nation's oil consumption growth will become slower because average growth of China apparent consumption has been 5.15% since the reform and opening up (from 1978 to 2010).

The CERS advised that the state needed to adjust current refined oil pricing mechanism to reduce adjustment time period of 22 working days and to diminish adjustment price fluctuation range from 4% to 2%. This will enable oil price to be adjusted more quickly, thus constraining hoarding and speculation and improving sensitivity to market supply and demand.