Analysis of the reasons for the three major oil export products

First of all, it is to maintain the domestic refined oil prices. Because of the excess production capacity of domestic refineries, the three major oils have no choice but to export refined oil at international prices. If you continue to sell to the domestic market, resulting in an increase in supply and a drop in oil prices, it will probably result in losses. Although the domestic price is higher, the price is very low due to deductions and excesses.

Second, the refined oil prices for exports are indeed higher than the actual domestic export prices, but they are floating systems, which are based on the general price changes in the international market. Therefore, it is linked to foreign market prices, and this price is very transparent. Most of the sales of processed oil in the market accounted for a very low total use, and the general petrochemical plants used more.

Finally, because the three major oils have not been subsidized for many years and they are required to pay taxes, profitability pressures are still very high. The export of the three major oils is foreign and meets all domestic requirements. Therefore, the export volume is actually small.