(Source: Sina Finance 2020-07-04）
On July 3, the Ministry of Commerce announced that it had decided to abolish the "Refined Oil Market Management Measures" and the "Crude Oil Market Management Measures" and take effect from the date of announcement. This move means that enterprises’ qualification approval for crude oil and refined oil operations has been simplified.
The above two management methods have been implementedIt will come into effect in 13 years, that is, January 1, 2007. In the original approval path, companies applying for crude oil sales, warehousing, and refined oil wholesale and warehousing qualifications need to obtain approval from the Ministry of Commerce; companies applying for refined oil retail qualifications need to obtain approval from the provincial competent department.
This time, after the two management measures were abolished, the qualification approval for crude oil and refined oil wholesale and warehousing operations was cancelled, and the approval for the retail operation qualification of refined oil was delegated to prefectural and municipal governments.
Dong Xiucheng, Professor of w88 casinosaid that the abolition of the old management methods has greatly lowered the industry entry threshold, decentralized approval authority, and more companies will participate in this part of the market.
Li Yanze, an analyst at Longzhong Information, believes that the core significance of this approach is to reduce the intervention of government departments in the oil product distribution industry, Abolition of the above two management measures will optimize the business environment and the consumption environment of the refined oil market, and the wholesale market will become more active in the future.
Actually as early asIn August 2019, the State Council issued relevant documents calling for the cancellation and delegation of the above-mentioned approval powers.
In August 2019, the General Office of the State Council issued the "Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption" which clarified that the approval of wholesale and warehousing operations of refined petroleum products will be cancelled, and the approval of qualifications for the retail operation of refined oil will be delegated to prefectural and municipal governments.
Dong Xiucheng believes that the current two management methods do not match the policy requirements of the State Council, so they are now abolished.
In addition,In December 2019, the Ministry of Commerce issued the "Notice on Effectively Implementing the Reform of "Delegating Power, Delegating Power, Delegating Power, Delegating Power, Delegating Regulations and Services" to the Management of the Circulation of Petroleum Refined Oils. It also emphasized that the aforementioned two management measures will be abolished in due course. At the same time, it is once again clarified that market entities engaged in wholesale and warehousing operations of petroleum and refined oil products can start operations in accordance with laws and regulations as long as they comply with relevant laws and regulations, meet relevant standards, obtain relevant qualifications or pass relevant acceptance inspections, and there is no need to apply to the competent commerce department; the approval and management of refined oil retail business qualifications will be handed over to prefecture-level governments.
Li Yan believes that the abolition of old management methods is a manifestation of increasing market demand. More private enterprises want to participate in the sales and warehousing business of crude oil and refined oil products. However, the review and approval process of the old management methods is complicated and relatively difficult, which inhibits the activity and competitiveness of the market entities.
Dong Xiucheng told Caixin reporters,The above two measures, which were implemented in 2007, have also promoted the marketization of the oil and gas industry. At that time, the oil and gas industry was highly concentrated. In the field of circulation, new gas stations were built in the wholesale and retail links, which were monopolized by China National Petroleum Corporation and Sinopec Group. The above two management measures issued by the Ministry of Commerce make it possible for state-owned enterprises, private enterprises, and foreign-funded enterprises that meet the access conditions to enter the market.
“Now, in the context of oil and gas system reform, further lowering the entry threshold for the downstream industry can make the market more competitive,” he said.
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