The Problem of "Upside Down" That Can't Be Said--Thinking about the "oil shortage" in some areas

Gasoline tensions have recently emerged in Beijing, Guangdong, Fujian, and Liaoning. Although the relevant companies explained that it was because of the reduction in crude oil imports at high international oil prices, the increase in the use of refined oil in the market, and even the impact of natural disasters such as Haitang Typhoon on the transportation of oil products, according to the author's observation. The existing circulation system of refined oil products and the “upside down” problem that arises under this system are important reasons for the “oil shortage”.
According to the existing system of refined oil circulation, all wholesale businesses are basically controlled by the two major groups. The price of refined oil is set by the country. For oil refiners, crude oil is owned by others. Refined oil cannot be sold on its own, and both ends are stuck. Once the international oil price rises, domestic oil refining companies will incur costs. In order to avoid production risks, some companies can only reduce production. At a time when the demand for refined oil products is high, the reduction in production by oil refineries will naturally reduce available resources and the market will become tight. Fujian refinery is a large-scale oil refinery company in Fujian Province, and its crude oil all depends on imports. International crude oil rose by 1 US dollar per barrel, and the cost of gasoline and diesel produced would increase by 70-80 yuan per ton. However, sales prices cannot change with the market, causing their product costs to reverse the sales price. When they are "upside down," they can only cut production to protect themselves. In the first four months of this year, the plant produced 971,000 tons of refined oil, a decrease of 27.1% from the same period last year.
The fate of refined oil sales companies is basically the same. Wholesale companies are just a few of them, the price is also the two major groups have the final say, and the retail price can not just rise, so there is a "patch upside down" strange phenomenon. At present, the wholesale price of the refined oil market in Guangzhou has already been much higher than the retail price, and now every dealer selling a ton of oil has to lose a thousand dollars. The distributors sold less or even sold them, and some even picked up the oil and waited for favorable changes in the price policy. As a result, the market supply will naturally be tight.
The production enterprises are less productive and the sales companies are selling less. The "oil shortage" is thus formed.
In recent years, the "oil shortage" has not been once or twice, nor is it an area or two areas. The "oil shortage" has brought serious negative impact on the development of China's economy. Although great efforts have been made in all aspects, as long as the existing circulation of refined oil products does not change, the issue of “upside down” will not be solved. The Chinese people are afraid that the days of “oil shortage” will be hard to come by.

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