Oil industry development

On June 29, 2022, the Ministry of Finance and the National Development and Reform Commission jointly issued the Notice on the Implementation of Phased Price Subsidies after international oil prices hit the regulatory ceiling, making it clear that domestic refined oil prices will not be raised temporarily after international oil prices exceed the regulatory ceiling of $130 per barrel. In accordance with the current price mechanism of refined oil products, the price of domestic refined oil products is adjusted every 10 working days according to the change of crude oil prices in the international market (hereinafter referred to as international oil prices). According to the relevant provisions of the Measures for the Administration of Oil Prices, when the international oil price exceeds the upper limit of US $130 per barrel, the price of gasoline and diesel oil is not mentioned or less mentioned in principle. In order to reduce the burden on downstream users and consumers and reduce the operating costs of the real economy, with the consent of The State Council, when the international oil price exceeds the control ceiling of US $130 per barrel, the domestic refined oil prices will not be raised in the short term (not more than two months), and the subsequent policy measures will be clarified in advance if the international oil price is higher than the control ceiling of US $130 per barrel for more than two months. At the same time, in order to protect the production enthusiasm of oil refining enterprises and ensure the safe and stable supply of refined oil products, the central government will give stage price subsidies to oil refining enterprises, and the subsidy standard is the amount of gasoline and diesel prices that should be adjusted within the price adjustment cycle, and eligible oil refining enterprises can apply according to the process.

3 All diesel oil is included in the scope of hazardous chemicals management

On October 13, 2022, the Ministry of Emergency Management and other ten departments issued the "Announcement" (No. 8 in 2022), which included all diesel fuel in the list of dangerous chemicals and no longer differentiated the size of the closed cup flash point, and the "Announcement" was implemented from January 1, 2023. This means that from January 1, 2023, diesel will be fully included in the management of hazardous chemicals, and the production, operation and use of diesel must follow the relevant provisions of the "Regulations on the Safety Management of Hazardous Chemicals" and "Measures for the Management of Hazardous Chemicals Business Licenses". The inclusion of diesel in the management of hazardous chemicals is the result of multiple requirements, and it is also an important measure to improve the supervision of the domestic refined oil industry. Illegal operation of dangerous chemicals will face more serious punishment, and even involve criminal liability risks such as dangerous operation crimes and illegal business crimes. The boundary of hazardous chemicals management is clear, the regulations are clear, and if all localities can properly support and strictly implement, it will effectively improve the level of industry fire safety and national energy security and purify the market. If the market is fair competition, oil refining enterprises will be more focused on technological upgrading, which is conducive to the transformation of oil refining structure and accelerate high-quality development.