Sinochem New Online News Since the State Council began collecting special oil proceeds 4 years ago, the controversy has not stopped. The oil companies have been complaining, complaining too much, making too much of a deal and being too embarrassed that they are “not motivatedâ€; and more people think that oil companies monopolize the monopoly year after year and receive this point. The special oil proceeds are really too cheap for them. The problem is that the entire oil sector is only a central state-owned enterprise. In the end, it is still relatively difficult to make comparisons. It seems that in order to quell the dispute in this area, only the oil market should be completely liberalized.
The introduction of special oil proceeds has two meanings. First, oil is a scarce resource. Whoever can use it to operate is an advantage. Naturally, it should also pay more taxes and fees. Second, the oil sector is highly monopolized in China. This move is also an attempt to break the monopoly. Now that oil companies have repeatedly complained, then is the tax itself really too heavy, or is it caused by the oil companies' own operations? Because it is not comparable, it is difficult to determine. From this perspective, it is probably not enough to rely on the levy of special oil proceeds to break the monopoly. Only when this market is completely liberalized and market-oriented competition is introduced, can the issue of the level of the special levy of the special oil proceeds be compared in the competition and it will be convincing. After the market is liberalized, market competition can maximize the efficiency of resource utilization and at the same time minimize the operating costs of the company. At that time, whether the specific income of oil is higher or the level of business operations is low, it will be more obvious. Just like Han Xiaoping, chief information officer of China Energy Network, since Sinopec and CNPC are “not motivatedâ€, why aren’t they still open to this market and let motivated companies do it?
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