Abstract: The new refined oil pricing mechanism becomes a hot issue at present with fluctuation of international oil prices.This paper analyzes the advantages and disadvantages of the current pricing mechanism，and studies measures to regulate the oil pricing mechanism and to make it suit China′s national conditions.As a result，the following suggestions are presented：increasing national oil reserve，integrating stateowned retail outlet network to achieve orderly and monopolistic competition，using analytic hierarchy process to choose pricing plans and so on.

Key words: international oil price, refined oil, pricing mechanism, monopolistic competition, analytic hierarchy process