On September 1, 2025, China's Management Measures for Refined Oil Circulation (click here for full policy text) will officially take effect, reinstating a unified national regulatory framework for refined oil circulation after a five-year gap.
Policy Highlights:
- Wholesale enterprises lose refueling qualifications; only licensed retail stations are allowed to sell fuel directly to end-users.
- E-commerce platforms without wholesale qualifications are barred from bulk purchases for resale but may resell prepaid cards issued by licensed stations.
- Wholesale and storage qualifications must still be filed with local commerce authorities.
- Wholesale operations can be conducted across provinces, while storage qualifications are recognized nationwide provided the invoicing and tax registration location remains unchanged.
- Retail supervision has tightened: except for agricultural, disaster-relief and other designated scenarios, fueling outside licensed retail outlets is prohibited.
Market Impact:
- Illegal fueling sites and unlicensed operators are being phased out, shifting market share toward compliant, large-scale retail chains.
- Smaller, non-compliant stations are losing cost advantages. Meanwhile, compliant, well-located branded stations are seeing gains in their retail volumes, market sources told GL Consulting.
- Stronger downstream compliance is eroding the competitiveness of independent refiners - many of which rely on tax arbitrage - while integrated refining and petrochemical complexes benefit from supply-chain efficiencies.
- The new measures lay the digital foundation for shifting consumption tax from refiners to retailers.
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Our full report offers an in-depth analysis of the Management Measures for Refined Oil Circulation, covering:
- A comparative review of compliance and regulatory changes
- Practical guidance on key operational issues under the new rules
- Clarification of regulatory responsibilities across government levels
- A timeline of regulatory adjustments in refined oil market supervision
The above content is the major conclusions and highlights extracted from China (Energy Transition) Policy Perspective. To get detailed full text, send an email to glconsulting@mysteel.com.
