Price regulation of other energy sources endures, sheltering consumers from cost changes or redistributing costs across types of consumers. End-user prices and the extent of price pass-through have also been determined taking into account the profit margins of domestic state-owned oil refineries, which dominate the Chinese market. In 2007 and early 2008 the pricing mechanism came under pressure as international oil prices surged. The government’s initial response was to hold back increases in retail prices, resulting in rising subsidies and mounting financial losses for refineries.