my country will impose import-link consumption tax on some refined oil products

Original question: How much will my country's imposing import-link consumption tax on some refined oil affect the market?

People's Daily Online, Beijing, May 15 (Reporter Du Yanfei) The Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation have recently issued an announcement stating that starting from June 12 this year, some refined oil products will be treated as naphtha or fuel oil to impose an import link consumption tax.

The announcement mainly involves three kinds of refined oil products, mainly including imported products such as mixed aromatic hydrocarbons, light cycle oil and diluted bitumen.

The relevant person in charge of the Ministry of Finance stated that in order to solve the above problems, domestic products have been included in the scope of consumption tax collection.

In this regard, Li Xu, a refined oil analyst at Jinlianchuang, said that as far as the market is concerned, the increase in import costs will cause the price of light cycle oil and mixed aromatics to rise, resulting in a reduction in the scale of imports, and it is likely that there will be an increase in alternative raw materials.

Li Xu also believes that for major domestic refineries, the import link consumption tax is imposed on light cycle oil and mixed aromatics, domestic oil supply may be tight, and refined oil prices will show an upward trend.

According to Ding Xu, an analyst at Longzhong Consulting, at present, domestic light cycle oil imports and uses greatly exceed mixed aromatics, and the diesel market price is underestimated.

"Enterprises purchasing and using the above products to produce ethylene and aromatics chemical products are subject to the current consumption tax refund (exemption) policy for fuel oil or naphtha.