In the face of the dilemma of the "oil" death, private oil companies rushed for years and finally welcomed us on March 3. The National Development and Reform Commission and the Ministry of Commerce jointly issued the "Circular on the Relevant Issues concerning the Operation of Privately-owned Refined Oil Enterprises", requesting PetroChina and Sinopec's two giants to rationally supply refined oil to private wholesalers, and that the price difference between wholesale and retail should not be less than 4.5%.
Many private oil companies have stated that the problems faced by private oil companies, such as oil sources and oil prices, have finally been solved at the policy level. The key to the future depends on the effectiveness of this measure.
The oil source and price double harvest “This is really a long-awaited for the private oil companies.†The new policy has inspired the Vice Chairman of the National Association of Industry and Commerce Petroleum Chamber of Commerce, Zhao Youshan, Chairman of Harbin Longqing Petrochemical Trade Co., Ltd. As a “war general†who is unsure for private oil companies, he has repeatedly led privately-owned oil companies to Beijing to collectively write.
The two ministries and commissions in the notice stipulated that PetroChina and Sinopec are responsible for supplying oil to private wholesale and retail companies that have signed long-term supply agreements. The supply and demand sides should strictly implement the terms of the agreement; the private wholesale enterprises should be contracted to their own gas stations and have signed contracts. If it is sold outside a retail gas station, the amount of oil supply may be reduced accordingly.
"This decision has solved the oil source problem that currently holds the neck of domestic private oil companies and is the decisive factor for the survival of private oil companies." Zhao Youshan told reporters.
Due to the long-term ups and downs of domestic refined oil prices, private oil companies cannot sustain their existence. In this regard, the notification also clarified the operating oil prices of privately-owned refined oil companies. The price of refined oil supplied by PetroChina and Sinopec Group companies to private wholesalers shall be deducted from 5.5% to 7.0% on the basis of actual retail prices stipulated by the state. All refined oil operating companies must strictly implement the state's pricing policy and strictly prohibit violations of the regulations.
"This will give private enterprises a certain margin of profit. According to the deduction rate of 7%, there will be a profit of nearly 100 yuan per ton of refined oil," Zhao Youshan explained.
Guo Jiaofeng, director of the Energy Economics Research Department of the Development Research Center of the State Council, pointed out that oil sources and prices are the decisive factors that limit the profitability of private wholesale oil companies. The resolution of these two problems will help the rise of private enterprises and will shake the monopoly of the two major groups. The system effectively relieves the oil shortage.
From disputes to compromises, in fact, from the second half of last year, the Development and Reform Commission repeatedly called the Ministry of Commerce, the two major groups and private oil companies to sit together and open a coordination meeting. Zhao Youshan and other private entrepreneurs could not remember how many times they had gone, and they even wrote the State Council. A report was submitted to the National People's Congress and the CPPCC National Committee, but no substantive progress has been made. "The main difference is that the two major groups either claim that there are no oil supply targets, or they may not talk about the price." The NDRC officials said.
At the end of January this year, the National Development and Reform Commission will once again consult with the Ministry of Commerce and PetroChina and Sinopec to discuss solutions. “We have no monopoly, and we supply 30 million tons of refined oil products each year for social oil companies.†At this meeting, the two major groups are still unwilling to compromise.
However, in the view of the National Development and Reform Commission, if private enterprises are not allowed to participate in competition on an equal footing, they are contrary to the State Council’s policy document on supporting the non-public economy and China’s commitment to China’s accession to the WTO, which is to steadily advance the refined oil market by formulating market access criteria for refined oil products. The opening up will form a diversified pattern of market operators.
In view of the pressure from both sides, the National Development and Reform Commission and the Ministry of Commerce had to balance the relationship between the two when the policy was decided. Li Xiaoling, secretary-general of the China Petroleum Business Council, said: "The "Notice" encourages state-owned oil giants to accelerate the reorganization of private wholesale companies by means of acquisitions, participations in stocks, joint ventures, etc., and requires that petroleum products produced by local refineries be strictly executed. The Sinopec two-group company's centralized wholesale regulations are the result of the final compromise."
It was this meeting that became a turning point for China's private oil companies. "It can be said that this is a negotiation between the two parties for mutual concessions. The private enterprises have gained new life, and the refining losses that the two big groups have made to ensure that private enterprises receive reasonable prices may also be offset by financial subsidies," Li Xiaoling said.
Questioning future operations "I am a bit worried about how this policy will be implemented." Qi Fang, chairman of Hebei Zhangjiakou United Petrochemical, is happy to have a different kind of complexity. "Actually, the NDRC has asked the two major groups to supply oil to private companies. There are also many notices, but it is difficult to implement them."
“Even if the NDRC approves, the oil source is still controlled by the two major groups. Who can guarantee the fairness and reasonableness of the distribution? Where are the resources provided to protect the social operators?†Qi asked.
The relevant person of Sinopec Hebei Petroleum Branch bluntly stated that “the international oil price is running at a high level, domestic refineries are depleted, and local refineries with processing capacity of 70 million tons are also closing down. Supplying companies has some difficulties, and at the same time, the snow disaster has led to refined oil consumption. In the high season, the refining capacity is not enough to fully meet the market demand."
The reporter was informed that the above factors have caused the huge losses of the refining groups of the two major groups to exceed previous years. It is an indisputable fact that the loss per ton is as high as a thousand dollars. According to reports, the central government issued two subsidy policies in the previous year and last year. Sinopec received a one-off subsidy of 10 billion yuan and 5 billion yuan respectively. This year, the two major groups applied for financial subsidies. "Subsidies are not enough to make up for the losses of refineries, and at the same time they must guarantee 4.5% of their profits. I am afraid it will be more difficult to do so." The person concerned of the Sinopec Hebei Petroleum Branch admitted frankly.
Let's put such an account on the reporter, China's demand for refined oil products is expected to reach 204 million tons in 2008. If the private-owned oil companies’ social business unit network accounts for 50% of the domestic market, that is equivalent to supplying private oil companies. 100 million tons of oil, the two major groups will reduce profits by 10 billion yuan.
Zhao Youshan believes that it cannot be completed within a short period of time from the release of the policy to the implementation of the enterprise. Under such circumstances, there are only two ways to go at the moment, either signing a long-term contract with the two major groups to guarantee supply, or taking the initiative They acquired.
Linking private oil companies into the major events of the oil and gas sector On December 4, 2006, the Ministry of Commerce issued the Measures for the Administration of the Refined Oil Market and the Measures for the Administration of the Crude Oil Market, which stipulate that since January 1, 2007, domestic crude oil and refined oil products have been opened to the outside world. The right to wholesale management breaks the pattern of the state's unified allocation of crude oil resources and the centralized wholesale of refined oil products from PetroChina and Sinopec.
In March 2007, 38 members of the National Committee of the Chinese People's Political Consultative Conference put forward a proposal to “break the monopoly, relax the policy, and the living space of the privately-owned oil circulation enterprisesâ€, which mentioned that the private oil companies should be given oil sources.
On May 23, 2007, the Ministry of Commerce issued the first batch of operating licenses since the opening of China’s refined oil wholesale market. Anhui Wuhu Second Ring Petroleum Co., Ltd. became the only privately-owned enterprise to be finalized.
On July 30, 2007, the Ministry of Commerce issued the first batch of operating licenses since the opening of China's crude oil wholesale market. Zhongyi Huahai Import & Export Co., Ltd. became the first private enterprise to obtain a crude oil business license.
In March 2008, the All-China Federation of Industry and Commerce proposed in the proposals of the two conferences that the establishment of a national oil reserve system should focus on the role of private enterprises, whether it is improving the state’s oil reserves or commercial reserves.
Many private oil companies have stated that the problems faced by private oil companies, such as oil sources and oil prices, have finally been solved at the policy level. The key to the future depends on the effectiveness of this measure.
The oil source and price double harvest “This is really a long-awaited for the private oil companies.†The new policy has inspired the Vice Chairman of the National Association of Industry and Commerce Petroleum Chamber of Commerce, Zhao Youshan, Chairman of Harbin Longqing Petrochemical Trade Co., Ltd. As a “war general†who is unsure for private oil companies, he has repeatedly led privately-owned oil companies to Beijing to collectively write.
The two ministries and commissions in the notice stipulated that PetroChina and Sinopec are responsible for supplying oil to private wholesale and retail companies that have signed long-term supply agreements. The supply and demand sides should strictly implement the terms of the agreement; the private wholesale enterprises should be contracted to their own gas stations and have signed contracts. If it is sold outside a retail gas station, the amount of oil supply may be reduced accordingly.
"This decision has solved the oil source problem that currently holds the neck of domestic private oil companies and is the decisive factor for the survival of private oil companies." Zhao Youshan told reporters.
Due to the long-term ups and downs of domestic refined oil prices, private oil companies cannot sustain their existence. In this regard, the notification also clarified the operating oil prices of privately-owned refined oil companies. The price of refined oil supplied by PetroChina and Sinopec Group companies to private wholesalers shall be deducted from 5.5% to 7.0% on the basis of actual retail prices stipulated by the state. All refined oil operating companies must strictly implement the state's pricing policy and strictly prohibit violations of the regulations.
"This will give private enterprises a certain margin of profit. According to the deduction rate of 7%, there will be a profit of nearly 100 yuan per ton of refined oil," Zhao Youshan explained.
Guo Jiaofeng, director of the Energy Economics Research Department of the Development Research Center of the State Council, pointed out that oil sources and prices are the decisive factors that limit the profitability of private wholesale oil companies. The resolution of these two problems will help the rise of private enterprises and will shake the monopoly of the two major groups. The system effectively relieves the oil shortage.
From disputes to compromises, in fact, from the second half of last year, the Development and Reform Commission repeatedly called the Ministry of Commerce, the two major groups and private oil companies to sit together and open a coordination meeting. Zhao Youshan and other private entrepreneurs could not remember how many times they had gone, and they even wrote the State Council. A report was submitted to the National People's Congress and the CPPCC National Committee, but no substantive progress has been made. "The main difference is that the two major groups either claim that there are no oil supply targets, or they may not talk about the price." The NDRC officials said.
At the end of January this year, the National Development and Reform Commission will once again consult with the Ministry of Commerce and PetroChina and Sinopec to discuss solutions. “We have no monopoly, and we supply 30 million tons of refined oil products each year for social oil companies.†At this meeting, the two major groups are still unwilling to compromise.
However, in the view of the National Development and Reform Commission, if private enterprises are not allowed to participate in competition on an equal footing, they are contrary to the State Council’s policy document on supporting the non-public economy and China’s commitment to China’s accession to the WTO, which is to steadily advance the refined oil market by formulating market access criteria for refined oil products. The opening up will form a diversified pattern of market operators.
In view of the pressure from both sides, the National Development and Reform Commission and the Ministry of Commerce had to balance the relationship between the two when the policy was decided. Li Xiaoling, secretary-general of the China Petroleum Business Council, said: "The "Notice" encourages state-owned oil giants to accelerate the reorganization of private wholesale companies by means of acquisitions, participations in stocks, joint ventures, etc., and requires that petroleum products produced by local refineries be strictly executed. The Sinopec two-group company's centralized wholesale regulations are the result of the final compromise."
It was this meeting that became a turning point for China's private oil companies. "It can be said that this is a negotiation between the two parties for mutual concessions. The private enterprises have gained new life, and the refining losses that the two big groups have made to ensure that private enterprises receive reasonable prices may also be offset by financial subsidies," Li Xiaoling said.
Questioning future operations "I am a bit worried about how this policy will be implemented." Qi Fang, chairman of Hebei Zhangjiakou United Petrochemical, is happy to have a different kind of complexity. "Actually, the NDRC has asked the two major groups to supply oil to private companies. There are also many notices, but it is difficult to implement them."
“Even if the NDRC approves, the oil source is still controlled by the two major groups. Who can guarantee the fairness and reasonableness of the distribution? Where are the resources provided to protect the social operators?†Qi asked.
The relevant person of Sinopec Hebei Petroleum Branch bluntly stated that “the international oil price is running at a high level, domestic refineries are depleted, and local refineries with processing capacity of 70 million tons are also closing down. Supplying companies has some difficulties, and at the same time, the snow disaster has led to refined oil consumption. In the high season, the refining capacity is not enough to fully meet the market demand."
The reporter was informed that the above factors have caused the huge losses of the refining groups of the two major groups to exceed previous years. It is an indisputable fact that the loss per ton is as high as a thousand dollars. According to reports, the central government issued two subsidy policies in the previous year and last year. Sinopec received a one-off subsidy of 10 billion yuan and 5 billion yuan respectively. This year, the two major groups applied for financial subsidies. "Subsidies are not enough to make up for the losses of refineries, and at the same time they must guarantee 4.5% of their profits. I am afraid it will be more difficult to do so." The person concerned of the Sinopec Hebei Petroleum Branch admitted frankly.
Let's put such an account on the reporter, China's demand for refined oil products is expected to reach 204 million tons in 2008. If the private-owned oil companies’ social business unit network accounts for 50% of the domestic market, that is equivalent to supplying private oil companies. 100 million tons of oil, the two major groups will reduce profits by 10 billion yuan.
Zhao Youshan believes that it cannot be completed within a short period of time from the release of the policy to the implementation of the enterprise. Under such circumstances, there are only two ways to go at the moment, either signing a long-term contract with the two major groups to guarantee supply, or taking the initiative They acquired.
Linking private oil companies into the major events of the oil and gas sector On December 4, 2006, the Ministry of Commerce issued the Measures for the Administration of the Refined Oil Market and the Measures for the Administration of the Crude Oil Market, which stipulate that since January 1, 2007, domestic crude oil and refined oil products have been opened to the outside world. The right to wholesale management breaks the pattern of the state's unified allocation of crude oil resources and the centralized wholesale of refined oil products from PetroChina and Sinopec.
In March 2007, 38 members of the National Committee of the Chinese People's Political Consultative Conference put forward a proposal to “break the monopoly, relax the policy, and the living space of the privately-owned oil circulation enterprisesâ€, which mentioned that the private oil companies should be given oil sources.
On May 23, 2007, the Ministry of Commerce issued the first batch of operating licenses since the opening of China’s refined oil wholesale market. Anhui Wuhu Second Ring Petroleum Co., Ltd. became the only privately-owned enterprise to be finalized.
On July 30, 2007, the Ministry of Commerce issued the first batch of operating licenses since the opening of China's crude oil wholesale market. Zhongyi Huahai Import & Export Co., Ltd. became the first private enterprise to obtain a crude oil business license.
In March 2008, the All-China Federation of Industry and Commerce proposed in the proposals of the two conferences that the establishment of a national oil reserve system should focus on the role of private enterprises, whether it is improving the state’s oil reserves or commercial reserves.