Charges of state administrative departments, the price of base oil, finished oil and the promulgated price of urban base land price shall be administrated according to relevant existing provisions.

The author points out that, in current situation, we determines price of domestic oil product by adding additional corresponding cost and profit based on weighted international prices.

This paper is going to argue the disadvantages of present oil price model and deliberate how to improve oil price management model according to the procedure of the price formed in our country.