In June 2023, the Ministry of Commerce (MOFCOM) released a new version of the "Oil Product Circulation Management Measures (Draft for Comments)" (refer to the "Measures") for public consultation. These measures are intended to become the national-level regulatory guidance for the oil products market management system. The aim is to address the previous lack of effective supervision policies at provincial markets since the abolition of the "Oil Products Market Management Measures" in 2020.
- New Version VS Former Version:
Source: MOFCOM documents, GL Consulting.
- Key Points:
- After the implementation of the State Council's "business regulation reform," the "Oil Products Market Management Measures" (2006), which were the national-level oil products supervision special regulations, were abolished in 2020. Since then, there has been a lack of effective follow-up supervision policies at both the national and local levels. The forthcoming "Measures" will enhance the current oil products market management system, providing a reference basis for local regulators and expediting the introduction of subsequent detailed measures for stricter supervision.
- The "Measures" clarify the delegation of authority to local governments, allowing each province to formulate detailed rules within their jurisdiction. According to the "Measures," oil products wholesalers and storage enterprises are required to register their basic information in the National Petroleum Market Information Management System once they obtain hazardous chemical business permits and business licenses.
- The requirement for storage facilities of product wholesalers has been incorporated into the approval process for the "hazardous chemicals business permit." Although some regions have not explicitly mentioned this requirement, the trend indicates that storage facilities will be one of the necessary conditions for wholesaler registration.
Appendix:
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Written by the GL Consulting team (Mysteel's consultancy arm on energy transition): glconsulting@mysteel.com
Edited by Navy Liu: liuchuanjun@mysteel.com