Abstract: For reason that the energy industry exists the natural contradiction of market competition and natural monopoly, energy products present the legal nature of both public and private. Hence, the energy product price formation mechanism should adopt a market-government hybrid model, and the market mechanism must take a dominant position. Such mechanism includes basic principles, impact factors, and specific rules. Among them, the basic principles include the market-led principle, the regulatory statutory principle, the rational regulation principle, and the energy justice principle, while the influencing factors include the scarcity degree factor, the supply-demand relationship factor, the production cost factor, the link damage degree factor, and the public service factor. The specific rules include the pricing rights rules of energy products and related supporting mechanisms. The former is at the core of the energy product price formation mechanism, in order to solve the problem of the allocation and execution of pricing rights, and the latter plays a supporting role, divided into constructive supporting mechanisms and supplementary supporting mechanisms. In the energy product price formation mechanism system, all the principles, elements, rules emphasizes different functions, play distinct roles but cooperate with each other, so as to achieve a balance between economic utility and social equity, and jointly serving the ultimate goal of promoting the rational allocation of energy products.