The National Development and Reform Commission (NDRC) said the government was studying a series of reforms to oil pricing that officials say are designed to stimulate more efficient use of energy and encourage greater use of smaller cars.

Although the NDRC gave few details of the substance of the reform or the timing, the statement follows heavy speculation in the Chinese media in recent days about forthcoming policy changes and analysts said it indicates that the government must be close to making a final decision.

“This shows the NDRC is going to issue the new policy soon,” said Qiu Xiaofeng, analyst from China Merchants Securities. “This is absolutely good news for Sinopec and PetroChina [China's two oil refiners] and it will also promote the sale of compact cars with low emissions.”