The Ministry of Commerce has recently issued the Administrative Measures for the Circulation of Refined Oil (hereinafter referred to as the “Measures”), which will take effect on September 1 this year. The “Measures” establish comprehensive regulations for all aspects of refined oil circulation, carrying significant implications for refined oil enterprises in Hengyang.

Under the new framework, refined oil wholesale and storage operations will be subject to record-filing management. Relevant enterprises in Hengyang must submit required materials—such as their business license and hazardous chemicals business permit—through the “National Petroleum Market Management Application” to the provincial commerce authority, and bear responsibility for the authenticity of the information provided. For retail operations, a licensing system will apply, requiring enterprises to apply to the designated municipal department where the retail outlet is located, meet compliance requirements in business qualifications and safety standards, and, upon passing the review, obtain a Retail Operation Permit.

Enterprises must conduct operations in strict accordance with laws and regulations. They are required to meet legal and technical standards, establish purchase–sales–inventory ledgers, enforce real-name registration for bulk gasoline sales, and maintain complete archives. They must improve management systems, formulate emergency response plans, conduct regular training and self-inspections, and report purchase, sales, and inventory data truthfully on a monthly basis. Without prior approval, enterprises may not establish new retail outlets, modify or expand existing ones, or suspend operations. Wholesale and retail enterprises must source oil from compliant channels, storage and custodial facilities must verify the legality of oil products, and retail outlets must prominently display their permit and clearly indicate alternative fuel information.

The provincial and Hengyang municipal authorities will compile and publish a directory of refined oil enterprises. Commerce departments at county level and above will conduct both on-site and off-site inspections to address violations, promptly report matters involving other authorities, and organize annual inspections to ensure corrective action. Hengyang will also promote information sharing, advance the development of “smart gas stations,” implement credit-based graded management, and publicly recognize enterprises with good credit standing.

The “Measures” set out clear legal liabilities. Enterprises found falsifying information in their record-filing or licensing applications will be subject to warnings and fines. Retail enterprises failing to meet licensing conditions or engaging in unauthorized transfer of permits will be ordered to rectify and held accountable. Commerce authority staff violating regulations will also face disciplinary action, and criminal liability will be pursued where applicable.

According to an official from the Hengyang Municipal Bureau of Commerce, the implementation of the “Measures” will establish a more robust management system for Hengyang’s refined oil sector. All enterprises and practitioners in the industry are urged to familiarize themselves with the provisions, make adequate preparations, and ensure lawful and compliant operations—jointly contributing to the high-quality development of the local refined oil industry.

Translator: Jing