With the liberalization of the right to import crude oil and the right to use imported crude oil, the structure of the domestic refined oil market has changed, and industry competition and operating pressure have increased. According to the news, during the National Two Sessions in 2021, Zhang Mingsen, member of the National Committee of the Chinese People’s Political Consultative Conference and chief expert of Sinopec Beijing Research Institute of Chemical Industry, suggested that policy support for the energy and chemical industry should be further increased, and the level of advanced industrial foundation and industrial chain modernization should be improved according to changes in the situation. Flexible adjustment and improvement of national fiscal and taxation policies.
Public data show that since my country became a net oil importer in 1993, the dependence on imported crude oil has continued to grow. In 2020, the import of crude oil will reach 540 million tons. Has reached 73%. “Especially in the current situation where the domestic and international environment is undergoing profound and complex changes, improving domestic crude oil self-sufficiency is of great significance to supporting the healthy development of oil and gas enterprises and ensuring the national oil and gas supply security.” Zhang Mingsen said.
To this end, Zhang Mingsen suggested that the special oil return fund should be abolished or the threshold should be increased.
The purpose of the state’s collection of special oil income funds is to adjust the excess income of oil and gas enterprises. It refers to the excess income that the country obtains from oil exploration companies selling domestic crude oil because the price exceeds a certain level. Proportionally collected proceeds. It was “born” on March 26, 2006. The higher the oil price, the greater the levy rate. A 5-level excess progressive ad valorem rate levy was implemented.
The levy rate of the special oil revenue fund is determined according to the monthly weighted average price of crude oil sold by oil mining companies. The initial threshold was US$40/barrel. From November 2011, it was raised from US$40/barrel to US$55/barrel. From January 2015, it was raised to US$65/barrel again.
The non-tax revenues of the central finance of special oil revenue and metals shall be included in the central finance budget management. The increase in the threshold will help oil companies reduce their tax burden. According to news reports, as early as the beginning of 2013, the China Petroleum and Chemical Industry Federation had proposed to the competent authority to differentiate the special oil income levy, and proposed to increase the threshold of the special oil income from 55 USD/barrel to 70 USD/barrel. Barrel, the reason given is the change in the cost of upstream extraction by oil companies. However, this proposal did not finally land.
Zhang Mingsen’s reason for this proposal is also related to mining costs. He said that the development of old oilfields in my country is currently in the mid-to-high water-cut stage, and the difficulty in stabilizing production is increasing. The newly-added proven oil reserves are of low abundance and poor quality. The new production capacity has a short stabilization period and a large decline. The levy of special oil revenue will continue. Further increase the development cost of oil and gas field enterprises,It is recommended to abolish the special oil return fund or adjust the threshold of the special oil return fund to US$80/barrel.
He also suggested speeding up the introduction of special measures for the use of oil price control risk reserves. “The outbreak of the new crown epidemic in 2020 and the drop in oil prices will put greater financial pressure on the production and operation of enterprises. It is recommended that the state, based on the use of risk reserves, speed up the introduction of special risk reserves for companies to improve oil quality, energy conservation and emission reduction, and ensure oil supply. The specific measures invested in safety and other aspects have effectively promoted the high-quality development of the energy and chemical industry.”
As many consumers know, there are “floor price” restrictions on domestic refined oil products. That is, when the international oil price is lower than US$40/barrel, no matter how the international oil price drops, the domestic refined oil price will remain unchanged, which is good for downstream refiners and distributors.
Where did the unadjusted money go? In fact, it has entered the oil price control risk reserve pool.
According to the “Administrative Measures for the Collection of Oil Price Control Risk Reserves” issued by the Ministry of Finance and the National Development and Reform Commission in 2016, when the price of crude oil in the international market When the lower limit is reached, the payer shall pay the risk reserve in accordance with the sales volume of gasoline and diesel and the prescribed levy standards. The risk reserve shall be turned over to the central treasury in full, included in the general public budget management, and listed as “other special income” to be used for energy conservation and emission reduction, improve oil quality, ensure the safety of oil supply, and implement safeguard measures against large fluctuations in international oil prices. Sources of funds.
The above documents stipulate that the three state-owned oil companies and other central enterprises should pay the risk reserve fund that should be collected by the Commissioner’s Office of the Ministry of Finance in Beijing.