| Q&A on Regulations for Crude Oil Market and Oil Product Market by Chong Quan, Spokesman of MOFCOM |
| Monday,December 11,2006 Posted: 10:18 BJT(0218 GMT) MOFCOM |
MOFCOM released Regulations for Oil Product Market and Regulations for Crude Oil Market on Dec 4, 2006 which would be put in force starting from Jan 1, 2007. Spokesman of MOFCOM Chong Quan answered relevant questions raised by reporters on such Regulations recently. Q: Would you please introduce background and significance of Regulations for Oil Product Market and Regulations for Crude Oil Market made by MOFCOM? A: According to China’s commitment made for entering WTO, China shall release the right of whole sale and operation of domestic crude oil and oil product to the outside world starting from Dec 11, 2006. In order to further push forward orderly open of China’s oil market, promote regular and healthy development of domestic crude oil and oil product market, MOFCOM amends and perfects Temporary Regulations for Oil Product Market and formulates Regulations for Crude Oil Market, meeting the requirements of Administrative License Law and Decision of the State Council on Establishing Administrative License for the Administrative Examination and Approval Items Really Necessary To Be Retained, and in accordance with market economic rules and characteristic of oil industry. These Regulations indicate that Chinese government seriously implements commitment of entering WTO, further expands opening of oil market, and accelerates marketnization in China’s oil distribution. They also bring benefit for guiding activity of enterprises to enter into China’s oil market reasonably, for fostering diversified market main body, for gradually building up a market structure with diversified oil sources and running body, and various brands and services, and for setting up unified, open, competitive and orderly oil market system. Q: What is the main content in these Regulations? A: The two Regulations clarify qualification, application, submitting documents, supervision and administration on ventures engaging in crude oil and product oil. Main body qualification, approved procedure, acceptance time limitation and legal responsibility of administration licensing implemented by all departments of commerce are strictly regulated. Q: Private ventures pay great attention to market entrance qualification of oil product. Could you please make a briefing on the situation confronted by these ventures after implementation of the Regulations? A: As continuous development of China’s socialist market economic system, various kinds of economic compositions gain relative developing space in national economy. By the end of Nov 2006, China’s wholesale ventures constituted 33.4% of domestic oil product wholesale ventures and social gas station constituted 56.3% of state-owned gas stations. All the figures present that private ventures have integrated into all parts of China’s oil product distribution. They play an important role in oil product market with large amount of ventures and broad distribution. Open in oil product market is an opportunity as well as a challenge for private ventures. Once they seize opportunity, utilize various advantages reasonably and accelerate development, they shall gain further developing opportunity and take positive position in market competition, become an energetic force in China’s oil and petrochemical industry, and contribute to the prosperity of China’s oil market. Q: Annual examination for ventures is regulated in both Regulations. What is the purpose of annual examination? A: Annual examination is a key means for administrations of commerce to learn about management of ventures, audit ventures crude oil and oil product operating license, and is a key Regulations to strengthen supervision and management on administrative license issue and for setting up market withdraw system. It also plays a significant role in regulating running order of crude oil and oil product market. Q: Regulations for Oil Product Market implements operating qualification examination and approval for ventures engaged in gas, coal oil and diesel oil. Shall the ventures be examined and approved if engaging in fuel oil, lubrication oil, naphtha and wax oil in domestic market? A: China now does not examine and approve operation of product oil except gas, coal oil and diesel oil. (Source: Network Center of MOFCOM) |
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