A few days ago, CNPC’s subsidiaries stated in the “Product Price Adjustment Instructions” that CNPC issued a notice that the State Administration of Taxation requires the industrial whitening products produced by various refineries affiliated to CNPC. Oil and food-grade white oil products are included in the scope of payment of consumption tax on refined oil, and taxes will be paid accordingly as required. As oil prices rise, the purchase cost of base oils is under increasing pressure. This notice has once again brought the consumption tax issue of the lubricant industry to the forefront. What impact will the inclusion of industrial white oil in refined oil consumption tax have on the lubricant industry? How will the market go?
