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【Development of the Oil Refining and Chemical Industry】Han Feng, a representative of the Ren Party: 1. Completely exempt imported naphtha and naphtha sourced from outside the country, which are used in the production of ethylene and aromatics, from consumption taxes. 2. Accelerate the adjustment of the industrial structure and promote the renovation and upgrading of old ethylene production facilities. Yin Zhaolin, another representative of the Ren Party: Introduce policies to support the transformation and upgrading of large, established petrochemical enterprises. Wu Xiwei, yet another representative of the Ren Party: 1. Speed up the development of world-class high-end petrochemical industry bases. 2. Advance the transition from controlling energy consumption to controlling both the total amount and intensity of carbon emissions as part of industrial adjustments under relevant policies. 3. Accelerate the implementation of strategies to enhance free trade zones, thereby promoting high-quality development within the energy and chemical industry through a “dual circulation” model. Jiang Shoulin, another representative of the Ren Party: Include the million-ton ethylene production project at Luoyang Petrochemical in the overall planning for the petrochemical industry. Han Feng, representing the Ren Party, called for complete exemption from consumption taxes on imported naphtha and naphtha sourced from outside the country, which are used in the production of ethylene and aromatics. Recently, Han Feng, general manager of the Safety Supervision Department at Sinopec Group, said in an interview with reporters that in order to truly enhance the competitiveness of chemical enterprises, it is advisable to completely exempt such imported and external naphtha from consumption taxes. Currently, imported naphtha used as raw material for the production of ethylene and aromatics must first pay consumption tax at the import stage, before a tax refund can be processed ； The naphtha supplied among the various companies within large corporate groups for the production of ethylene and aromatic hydrocarbon raw materials, after being verified by the tax authorities, is included in a designated direct supply program, allowing exemption from consumption tax ； When purchasing naphtha from outside large corporate groups (referred to as \"external naphtha\") for use as raw material in the production of ethylene and aromatics, the supplier company first pays the consumption tax and related taxes, after which the buyer company handles the refund of those taxes. Han Feng believes that the advance-payment-with-later-refund mechanism for value-added tax on imported naphtha and naphtha sourced from external sources both tie up corporate funds, increasing financial pressure and costs for enterprises, and thus hindering the reduction of raw material costs. He suggested that the State Taxation Administration and the General Administration of Customs include imported naphtha and externally sourced naphtha used in the production of ethylene and aromatics within the scope of naphtha subject to direct supply from designated sources, thereby exempting it from consumption tax outright. Deputy REN Han Feng is accelerating the adjustment of the industrial structure and promoting the renovation and upgrading of older ethylene production facilities. In recent years, China has been moving from a \"manufacturing giant\" to a \"manufacturing powerhouse\", and the competitiveness of new ethylene production projects in the country has improved significantly. In the future, the main supply sources for the global petrochemical industry will shift to the \"new triangle\" of the United States, the Middle East, and China, and an increasing self-sufficiency rate in ethylene equivalent consumption in China will become a prominent feature of development. Han Feng, General Manager of the Safety Supervision Department at Sinopec Group, said in an interview with reporters that currently there is a high demand for ethylene in China, but the self-sufficiency rate is low. He suggested aiming to increase domestic ethylene self-sufficiency by phasing out outdated ethylene production facilities, accelerating efforts to convert oil into other products, and upgrading existing ethylene plants. Han Feng explained that in 2021, China’s ethylene production capacity was 41.68 million tons per year, with a production volume of 37.47 million tons. The consumption of ethylene equivalent was 58.32 million tons, giving a self-sufficiency rate of around 64%. Taking into account the development of the international and domestic petrochemical industries, it is feasible for China to achieve an 80% self-sufficiency rate in ethylene equivalent consumption. If domestic demand for ethylene reaches 79.5 million tons by 2025, it will be necessary to increase ethylene supply by over 20 million tons during the 14th Five-Year Plan period. Han Feng believes that China’s ethylene industry developed steadily in the 1980s and 1990s, with a relatively small scale – generally around 200,000 to 400,000 tons per year. This is a significant gap compared to the new ethylene plants with capacities of over 1 million tons per year today, resulting in obvious shortcomings in terms of economic efficiency and competitiveness. At the same time, the aging of the equipment results in high energy consumption, which is significantly higher than the **established benchmark levels for energy efficiency in ethylene production facilities. Furthermore, the facility has been in operation for over 25 years, posing high safety risks, and its environmental performance is significantly inferior to that of newly built facilities. These old ethylene plants urgently need to be upgraded. In fact, the competitiveness of the domestic ethylene industry has improved significantly, and older ethylene plants meet the conditions for structural transformation and upgrading. Han Feng suggests that, first, refining and chemical companies should, based on their current oil refining capacity, make use of existing resources and utility facilities to upgrade their older ethylene production units. Second, **relevant industrial policies should be introduced, allowing local authorities and enterprises to independently approve projects for the renovation and upgrading of ethylene plants, with the aim of replacing older facilities with newer ones and closing down smaller ones. Yin Zhaolin, a representative of the Ren faction, has introduced policies to support the transformation and upgrading of large, established petrochemical enterprises. Consumption of refined oil is on the verge of reaching its peak, and ethylene production facilities are often old, small-scale, and scattered in distribution… After 70 years of development, China’s petrochemical industry is now at a critical stage requiring transformation and upgrading. Recently, Yin Zhaolin, a prominent representative of the Ren faction, executive director of Sinopec Maoming Petrochemical, representative of the branch company, party secretary, and head of the Maoming-Zhanjiang petrochemical integration leadership team, said in an interview with reporters that he recommends **introducing policies to support large, established petrochemical companies that are able to achieve complete self-sufficiency in ethylene raw materials, to facilitate the transition from oil refining to chemical production, to upgrade small ethylene production facilities, and to increase the scale of ethylene production as much as possible. The petrochemical industry is a pillar industry of the national economy. For a long time, the existing petrochemical industry bases in China have played a key role in promoting the development, expansion, and strengthening of the related industrial chains in the surrounding areas, making significant contributions to the economic and social development of those regions. However, as the economy and society continue to develop, various problems have emerged. In terms of market conditions, domestic diesel consumption reached its peak in 2015 (173 million tons), while the growth rate of gasoline consumption has slowed down significantly; it is expected to reach its peak by 2025 (156 million tons), posing a huge challenge for petrochemical companies. Challenges come with opportunities; as people’s demand for a better quality of life continues to rise, so does their demand for chemical products. Domestic consumption and production of ethylene are still experiencing rapid growth, and it is expected that the demand for exports of plastics, rubber, and related products will maintain a high growth rate over the next 10 years. From a corporate perspective, some large petrochemical companies were established quite early; their refining and ethylene production facilities are old, outdated, small in scale, and scattered in location. Their technology is relatively backward, their energy consumption is usually higher than the industry standard, and their industrial chains are short – with few mid-to-high-end products available. These conditions do not meet the requirements of high-quality development. Last October, five ministries and commissions including the National Development and Reform Commission jointly issued the \"Several Opinions on Strengthening Energy Efficiency Requirements to Promote Energy Saving and Carbon Reduction in Key Sectors,\" proposing to improve policies supporting technological upgrades in order to make better use of the combined effects of various policies and to advance, in a prudent manner, technological upgrades aimed at energy saving and carbon reduction for existing projects in key industries. Among them, the \"Action Plan for Promoting Energy Conservation and Carbon Reduction in Key Petrochemical Industries through Strict Energy Efficiency Requirements (2021–2025)\") calls for the phasing out of refining units with a capacity of 2 million tons per year or less, as well as an accelerated phase-out of ethylene production units with a capacity of 300,000 tons per year or less. It also encourages enterprises whose energy efficiency falls between the benchmark level and the baseline level to carry out renovations and upgrades in line with the benchmark requirements. “At present, it is imperative to carry out comprehensive optimization and upgrading of large, established petrochemical enterprises (with refining capacities of tens of millions of tons and ethylene production capacities of over millions of tons), in order to reduce oil production and increase chemical product production. Utilizing new technologies to expand and improve the capacity of smaller ethylene plants is the only way for such established petrochemical enterprises, as well as entire **established petrochemical industrial bases, to achieve transformation and upgrading and high-quality development, and this holds great significance. ”Yin Zhaolin suggested **increasing policy support further, revitalizing the existing assets of older petrochemical enterprises, and promoting high-quality development in the petrochemical industry, so as to make new and greater contributions to China’s journey toward building a modern socialist country in all respects. Deputy REN Da, Wu Xiwei, is accelerating the development of world-class high-end petrochemical industry bases. Recently, Wu Xiwei – Deputy REN Da, executive director and party secretary of Sinopec Zhongke Refining & Chemicals, as well as deputy head of the Maozhan Refining & Chemicals integration project team – said in an interview with reporters that the decades-long development experience of the Western petrochemical industry shows that pursuing an intensive development approach and establishing highly concentrated petrochemical industry zones is the direction that must be followed to promote high-quality development in this sector. He suggested accelerating the development of China’s world-class high-end petrochemical industry bases to promote the high-quality growth of China’s petrochemical industry. Wu Xiwei pointed out that after decades of development, the global petrochemical industry has now established a massive modern industrial system. China’s petrochemical industry has also gone through stages of initiation, development, and maturity, becoming one of the pillar industries of the country’s economy. Judging from the current domestic situation, although there is an excess of refining capacity, the proportion of capacity that is truly world-leading and meets the requirements of green and low-carbon development remains low ； Chemical production capacity is increasing rapidly, but there is still significant room for future development. At present, China’s per capita demand for ethylene is only about 50% of that in the United States, and the country’s dependence on imported ethylene is close to 50%; the reliance on imports for high-end chemical products is even higher. Therefore, implementing the Party’s *spirit and promoting the high-quality development of the petrochemical industry remains one of the key aspects for the future development of China’s industry. Wu Xiwei suggested: Accelerate the development of a world-class high-end petrochemical industrial base, and swiftly transform Donghai Island in Zhanjiang into an internationally renowned emerging hub for the petrochemical industry, as well as a new demonstration zone for further opening up of China’s chemical industry to the outside world. “The Donghai Island Petrochemical Industry Park in Zhanjiang, Guangdong, possesses all the conditions necessary to become a world-class high-end petrochemical industry hub. ”Wu Xiwei said. Donghai Island, where the park is located, is the fifth largest island in the country, with an area of 286 square kilometers. It is China’s largest economic development zone, offering vast space for the development of the petrochemical industry ； Currently, the island is home to world-class petrochemical companies such as Sinopec Zhongke Refining & Chemical and German BASF; the foundational advantages for the development of the petrochemical industry have already been established ； The island boasts well-developed infrastructure: crude oil pipelines, natural gas pipelines, and a 300,000-ton deep-water crude oil terminal have all been constructed and put into service. Additionally, Donghai Island has 6.5 kilometers of coastline suitable for building a world-class deep-water port, making its conditions extremely favorable. Taking advantage of the favorable conditions of Donghai Island, **planning should be carried out in a coordinated manner, construction should proceed in an orderly fashion, and a more scientific and rational industrial chain should be established, so as to accelerate the transformation of Zhanjiang Donghai Island into an internationally renowned emerging hub for the petrochemical industry and a new model area for further opening up China’s chemical industry. Deputy Ren Wu Xiwei advocates for a scientific approach to advancing the transition from controlling energy consumption to controlling both total carbon emissions and their intensity. Industrial restructuring under this policy is part of the \"dual carbon\" strategy, which is a long-term, challenging, and complex endeavor; it cannot be accomplished in one go, nor can it be achieved simply by assigning tasks or setting targets. In response to this, Wu Xiwei, a deputy to the National People’s Congress, executive director and party secretary of Sinopec Zhongke Refining & Chemicals, as well as deputy head of the Maozhan Refining & Chemicals Integration Leadership Team, suggested advancing in a scientific manner the industrial restructuring under the policy shift from \"dual control\" of energy consumption to \"dual control\" of total carbon emissions and their intensity. Wu Xiwei said that shifting from the \"dual control\" of energy consumption to the \"dual control\" of total carbon emissions and their intensity can swiftly and effectively address the challenges facing China at present, such as increasing resource constraints, severe environmental pollution, and ecosystem degradation. However, late last year, some regions implemented harsh “dual control” measures. These measures not only hindered the survival and development of enterprises but also caused significant disruptions to people’s normal lives. Such policies are utterly unacceptable. Wu Xiwei suggested: First, always adhere to the overall principle of \"stability\". To properly understand the central government’s requirements and adhere to the overall principle of making progress while maintaining stability, it is essential to recognize that carbon neutrality is not merely a technical issue; it is also a comprehensive issue related to the balanced development of the economy and society. It is crucial to avoid a one-size-fits-all approach or campaign-style efforts to “reduce carbon emissions,” nor should all approvals for new projects be suspended. Such measures run counter to the new development philosophy. Particularly in relatively underdeveloped regions, it is essential to strike a scientific balance between carbon reduction, development, transformation, and safety. The “dual carbon” strategy must be implemented in a manner suited to local conditions and in a step-by-step fashion—without resorting to a one-size-fits-all approach. Otherwise, it could plunge these underdeveloped areas into a “vicious cycle” of development, exacerbating existing imbalances and inadequacies. Second, accelerate the progress of projects that meet the requirements of modern industrial development. Implementing the \"dual carbon\" goals must not compromise energy and industrial chain supply chain security, nor must it affect the normal lives of the people. To ensure a smooth transition from old to new production capacities, it is essential to adhere to the principle of “establishing the new before phasing out the old”. First and foremost, efforts should be made to vigorously encourage and develop high-tech industries. The approval process for projects that feature advanced technologies, energy efficiency, low carbon emissions, and the ability to replace imports should be accelerated. Even in cases where there is overcapacity, a blanket refusal to approve new projects must be avoided. It is necessary to prevent any investment in or construction of energy-intensive and polluting projects at the outset. On this basis, existing outdated production capacities can be phased out in an orderly manner. This approach will effectively ensure that adjustments in industrial policies do not have a significant negative impact on the economy and people’s livelihoods—this is indeed the right path in line with China’s current development realities. Third, we must adhere to a goal-oriented approach to promote the transformation and upgrading of enterprises. Strengthen energy management in key industries and enterprises; adopt measures such as incentives and penalties, as well as restrictions, to encourage them to carry out energy-saving technological upgrades, to use advanced domestic or international energy-saving technologies and equipment, to accelerate the phasing out of outdated technologies, and to improve energy efficiency levels. For some traditional industries, enterprises are required to set phased energy-saving targets, which helps guide them in making scientific adjustments to their development structure. Financial support and policy incentives are provided to ensure the feasibility of these energy-saving strategies, enabling enterprises to enhance their core competitiveness while achieving energy conservation and emission reduction goals, thus creating a win-win situation for both enterprise development and green transformation. Fourth, accelerate the intensive development of the petrochemical industry. The petrochemical industry is a major consumer of energy and is also **one of the most important sectors for implementing the ‘dual carbon’ strategy**. Adopting an intensive development approach and establishing highly concentrated petrochemical industrial zones is the direction that must be pursued to promote the high-quality development of the petrochemical industry. It is recommended to take advantage of the favorable period for vigorously promoting industrial transformation and upgrading to accelerate the scientific optimization and restructuring of the petrochemical industry. In line with the requirements of industrial park development, integration of refining and chemical production, larger-scale facilities, cleaner production methods, and higher-quality products, efforts should be made to build highly centralized, large-scale, world-class petrochemical industrial zones that feature integrated refining and chemical operations. Additionally, several petrochemical industry hubs with world-class scale, competitiveness, and green development capabilities should be established as soon as possible. Deputy REN Wu Xiwei is accelerating the implementation of strategies to enhance free trade zones, with the aim of promoting high-quality development in the energy and chemical industries through a ‘dual circulation’ approach. The current global situation is unprecedentedly complex and full of contradictions; global industrial and supply chains are undergoing restructuring, and the international order is in a transitional period marked by the shift from the old order to a new one. With the United States pursuing unilateralism and the WTO’s dispute settlement mechanism being paralyzed, international economic and trade rules have shifted from a multilateral framework to a fragmented one. Major countries and regions around the world are actively negotiating and signing high-profile free trade areas and investment agreements, aiming to gain leadership and a voice in formulating new international economic and trade rules through regionally based agreements with high standards. ““It is recommended to accelerate the implementation of the strategy for upgrading the free trade zone, so as to promote high-quality ‘dual circulation’ in the energy and chemical industry,” recently, Wu Xwei, a deputy to the NPC, Executive Director and Party Secretary of Sinopec Zhongke Refining & Chemical, and Deputy Head of the Leading Group for the Maoming-Zhanjiang Refining and Chemical Integration Project, said in an interview with reporters. Wu Xiwei explained that in order to effectively address the challenges posed by the current international economic and trade landscape, accelerate the establishment of a new development pattern featuring “dual circulation” both domestically and internationally, participate in and help shape the formulation of new international economic and trade rules, and spur deeper domestic reforms, the 14th Five-Year Plan outlines the implementation of a strategy to upgrade free trade zones. China is accelerating the establishment of high-standard free trade zones of major scale, including the RCEP, the world’s largest free trade agreement that has just come into effect. It is also pushing forward negotiations with Japan and South Korea, as well as with the GCC, actively applying to join CPTPP, and striving to launch free trade talks with the EU at the earliest possible time. These major free trade areas involve important trade partners in the energy and chemical industries, such as Japan, South Korea, the GCC, the United States, and the EU. They have a significant impact on the industry’s development in terms of resource supply, technological cooperation, product trade, and investment patterns. Wu Xiwei believes that the energy and chemical industry faces numerous tasks and challenges, including ensuring energy security, promoting a low-carbon transformation of the industrial structure, reducing excess production capacity, improving product quality, and investing in new energy sources. Active participation in the development strategies of free trade zones will provide important support for the high-quality development of this industry. He suggested: First, accelerate the implementation of the strategy to upgrade the free trade zones. We will push forward high-level opening up and the development of high-standard free trade zones with greater vigor, actively pursue negotiations for major, high-standard free trade zones, and continuously expand the circle of free trade partners. At the same time, it actively aligns itself with high-standard economic and trade rules such as CPTPP, accelerates domestic reforms, and promotes the stress testing of these rules in domestic free trade pilot zones as well as their replication and dissemination. By accelerating openness and advancing free trade, it is possible to streamline the supply channels for energy and resources, expand the investment opportunities for enterprises in the energy and chemical sectors, create broader integrated markets, strengthen and improve industrial and supply chains, and promote a dual circulation system both domestically and internationally. Second, in the negotiations on free trade zones, we actively seek and listen to the opinions of key industries and enterprises, including those in the energy and chemical sectors, so as to secure the most favorable international development environment for domestic enterprises. The healthy development of key industries and key enterprises plays an important role in serving **strategic goals**, ensuring **security**, economic security and industrial security, developing strategic emerging industries, and advancing strategic cutting-edge high technologies. At the same time, strengthen guidance for enterprises in conducting research on free trade zones (particularly new issues and rules), guide their reform and development to align with the strategy of high-level openness and the improvement of free trade zones, and enhance their ability to take advantage of the strategic opportunities offered by free trade zones. Third, while accelerating openness and raising its level, attention is paid to protecting key and sensitive industries, as well as industrial and product chains. In the negotiations for free trade zones, it is necessary to strengthen the protection of core industrial supply chains for strategic basic materials that have a significant impact on industries such as the ethylene sector and contribute greatly to job creation. Measures such as maintaining current tax rates or providing extended transition periods for tax reductions should be adopted to ensure the security of the energy and chemical industries. At the same time, emphasis is placed on protecting new materials that represent the direction of transformation and upgrading in China’s energy and chemical industries, high-end functional materials, as well as key raw materials and materials related to strategically important emerging industries. Jiang Shoulin, representative of the Ren Party group, has included Luoyang Petrochemical’s million-ton ethylene production project in the **planning for the petrochemical industry. Recently, Jiang Shoulin, representative of Sinopec’s Luoyang branch and secretary of its Party committee, said in an interview with reporters that Luoyang Petrochemical is one of the largest oil refining and processing enterprises in the central and western regions; by the end of 2021, it had processed over 160 million tons of crude oil, generating taxes amounting to more than 100 billion yuan. He suggested including Luoyang Petrochemical’s million-ton ethylene project into the **petrochemical industry development plan, in order to help advance the petrochemical sector in the central and western regions toward higher levels of sophistication. Jiang Shoulin explained that Luoyang Petrochemical currently has a comprehensive refining capacity of 10 million tons per year. Its chemical processing facilities are primarily capable of producing 140,000 tons per year of polypropylene, while its fiber production unit has a capacity of 200,000 tons per year for polyester, along with associated short-fiber production facilities. The main products include dozens of types such as gasoline, diesel, aviation kerosene, and liquefied gas. As an important energy enterprise in the Yellow River Basin, with the support of Sinopec and Henan Province, Luoyang Petrochemical is steadily enhancing its capacity to supply clean petroleum products. In line with the policy orientation of \"controlling oil production and increasing chemical production,\" it has adopted a development strategy aimed at building ethylene production facilities with a capacity of one million tons during the 14th Five-Year Plan period, thereby helping to elevate the petrochemical industry in the central and western regions to a higher level. “It is highly necessary to build a million-ton ethylene project in Luoyang. ”Jiang Shoulin said. On the one hand, North China is the region in China where oil refining capacity is most overcapacity, and competition in the refined oil market is fierce. There is an urgent need to develop large-scale high-end ethylene projects to facilitate the conversion of oil, thereby promoting the healthy development of the oil refining industry in this region. On the other hand, as a province with a large population, a strong economy, and a significant agricultural sector, as well as a transportation hub, Henan Province has a steady demand for downstream products of ethylene and plastic manufactured goods. At present, domestic ethylene production facilities are mainly located in coastal areas. There is a huge gap between supply and demand for ethylene in Henan Province and its surrounding regions; the amount of ethylene needed to produce polyethylene alone exceeds 1.5 million tons per year. 80% of this amount has to be imported from other provinces or even abroad. It is therefore necessary to build ethylene production facilities with a capacity of millions of tons in order to fill this supply-demand gap in Henan and the central and western regions, ensure the security of the industrial and supply chains, and promote high-quality development. Jiang Shoulin believes that it is highly feasible to build a million-ton ethylene project at Luoyang Petrochemical. Firstly, in recent years China Petrochemical and Henan Province have worked closely together to complete and put into operation a refinery restructuring project with an annual processing capacity of 10 million tons, a crude oil storage facility with a capacity of 1.2 million tons, as well as a crude oil pipeline connecting Rizhao, Puyang, and Luoyang with an annual transport capacity of over 10 million tons. These facilities can provide sufficient raw materials for the ethylene production projects. Second, the preliminary work for this project is progressing smoothly. Thirdly, in terms of the layout of the plant structure and the selection of process technologies for this project, the principles of \"cleanliness, efficiency, low carbon emissions, and recycling\" are adhered to. Its energy efficiency, carbon emission levels, water resource utilization rate, as well as the proportion of domestically produced equipment and facilities, all reach advanced levels in China. Jiang Shoulin said that the construction of the million-ton ethylene plant at Luoyang Petrochemical will enable full utilization of the company’s existing assets worth nearly 20 billion yuan, accelerate the transition from oil refining to chemical manufacturing in North China, and play a significant role in promoting the economic development of Henan Province. Jiang Shoulin suggested that the 1 million-ton ethylene project at Luoyang Petrochemical should be incorporated into the **petrochemical industry plan as soon as possible, in order to meet the demand for basic chemical materials in Henan Province and even in the central and western regions. This would provide important support for the development of these areas as well as for the ecological protection and high-quality development of the Yellow River basin. [Development of the refined oil market] Li Yonglin, a member of the National Committee of the Chinese People’s Political Consultative Conference, said that under the “dual carbon” strategy, it is necessary to promote the use of cloud platforms for monitoring gasoline station sales. Representative Huang suggested that efforts should be continued to regulate the refined oil market and further improve regulatory policies. Li Yonglin, a member of the National Committee of the Chinese People’s Political Consultative Conference and vice president of Sinopec, said in an interview with reporters that the petroleum and petrochemical industries have made some progress in reducing their carbon emissions in line with the “dual carbon” goals and requirements regarding energy control. However, there are gray areas in the current distribution of refined oil products; a large amount of resources that are not included in official statistics are processed by private gas stations, resulting in a huge underground market that poses significant obstacles to the implementation of the \"dual carbon\" strategy in the petroleum and petrochemical industry. He suggested advancing the rollout of the cloud platform for monitoring gasoline station sales in order to establish a big data supervision system for gasoline stations. Li Yonglin said: The petroleum and petrochemical industry is thoroughly implementing the major strategic decisions of **** and the State Council regarding carbon peak and carbon neutrality, and making steady progress in efforts to achieve carbon peak goals. Especially since 2021, China has made significant efforts to improve the governance of its domestic refining and chemical industry, gradually phasing out outdated production capacities ； Tightening the quotas for general trade and processing-export of refined oil products has helped to change the pattern of large-scale imports and exports, achieving certain results. However, nearly 30% of these off-balance-sheet resources are outside the scope of **regular departmental management. Social gas stations take advantage of the fact that most customers who purchase fuel do not require invoices, and they acquire large quantities of such off-balance-sheet resources to sell them, thus becoming the main channel for dealing with these resources. Cheating at social gas stations severely undermines the implementation of the dual-carbon strategy. “‘The ‘Gas Station Sales Monitoring Cloud Platform’ offers good anti-fraud capabilities. ”Li Yonglin explained that, in response to fraudulent practices in gasoline station sales, 17 provinces and municipalities including Guangdong and Jilin **established cloud platforms for monitoring gasoline station sales in 2021, in line with the State Council’s requirements for reforming administrative procedures. By managing gasoline station sales data in real time online, it became possible to detect and address fraudulent activities related to such data promptly, thereby reducing the opportunities for fraud at gasoline stations. So far, Guangdong and Jilin have fully launched the service across their entire provinces, while some areas in Guizhou, Guangxi, Jiangsu, Zhejiang, and other places have also launched it. Li Yonglin suggested: Promote the development of a cloud platform for monitoring sales at gas stations. **At the strategic level, define the leading department and objectives. Building on previous experience, a nationwide campaign has been launched to crack down on fraudulent activities related to sales data at gas stations. In the face of new technologies, new challenges, new situations, and new demands, local authorities are encouraged to **use the ‘Internet+’ approach to conduct useful explorations and research in the area of gas station sales supervision, thereby iterating and optimizing the technical approaches and solutions available on such platforms. It is recommended that the State Taxation Administration and the State Administration for Market Regulation address the main problems and contradictions existing in the supervision of refined oil markets at present, remove institutional barriers, and support local authorities in promoting the deployment of supervision platforms according to local conditions. Establish a big data supervision system for gas stations. Local authorities are encouraged to break down \"data silos\"; building on the supervision platforms for gasoline station sales, they should establish interconnections with data from departments such as transportation, taxation, commerce, emergency management, public security, statistics, and banking, in order to create a \"big data system for monitoring gasoline stations\" and enhance the ability to supervise the retail fuel industry both during and after operations. Improve the mechanisms for data collection, analysis, dissemination, and utilization, and establish a credit rating system for the refined oil retail industry, thereby providing feasible approaches, methods, and measures to support the \"dual carbon\" strategy in the field of refined oil consumption. Huang He, a representative of the National People’s Congress, has been working to strengthen regulation of the refined oil market and further improve relevant oversight policies. In a written interview with journalists, Huang He, who is also a representative of Sinopec’s Hunan Petroleum Branch and the party secretary of that unit, said that since the beginning of 2021, **relevant departments at all levels** have taken various measures to tighten regulation of the refined oil market, thereby helping to bring this industry under more stringent oversight. He suggested further improving the support systems and related infrastructure while upholding industrial governance and market order regulation. The Yellow River said: Illegal operations in the refined oil market still pose significant risks. Non-compliant refined oil resources pose a long-term threat to energy security. The problem of illegal production capacity remains unresolved; there is still a risk of supply disruptions in the future. The persistence of substandard supplies also leaves little room for industrial upgrading. In addition, in recent years, the amount of tax evasion related to refined oil has been on the rise, which has not only led to **severe fiscal losses, but also hindered the potential growth of advanced production capacity. “Further strengthening the supervision of the refined oil market helps the industry accelerate its low-carbon transition, enhance its competitiveness, and reduce the waste of social resources. ”Huang He said. Suggestions for the Yellow River: First, conduct a qualitative assessment and carry out rectifications in phases to avoid disruptions in supply; conduct thorough investigations. Enterprises with outdated production capacities that are included in the phase-out plan should reduce their production capacity in a structured manner. At the same time, measures such as encouraging enterprises to resume operations and advancing capacity expansion should be taken to ensure the availability of alternative resources. Second, establish a long-term management mechanism to maintain the healthy development of the industry. Based on the improvement of statistics for the entire industrial chain, supported by advancements in tax administration techniques and capabilities, guaranteed by joint oversight from central government departments and local authorities, and driven by the advancement of market-based pricing for refined oil products, efforts are made to comprehensively enhance the supervision level of the entire refining and distribution industry chain, promote industrial upgrading, and ensure energy security. Third, improve the refined oil reserve mechanism and optimize and integrate the transportation network. At the same time, ensuring the quality of oil products, specific measures for dedicated pipeline transportation and quality assurance are established for multiple customers, in order to reduce quality risks. Fourth, we must accelerate the reform of the consumption tax distribution system to foster a fair competitive environment for the refined oil market.