The Research Of Legal Regulation In Chinese Petroleum Monopoly

As a kind of natural resource, oil is also a kind of strategic resource as for its important relationship with national security and economic stability.According to the Natural Monopoly Theory, oil industry is characteristic of its economies of scale and extremely high costs, so it is suitable to maintain a monopoly of oil industry. China also chooses the suitable way. However, the recent_discontinued storm of Maohua Shihua and_gasoline shortages in the south tell us, the monopoly of oil industry can not reach the expected value of the target. The monopoly of oil industry leads to a lot of problems in its management system, such as indistinction between the functions of the government and enterprises. The government not only formulates the rules and regulations, but also oversees the implementation. In the enjoyment of the right of countries which give them business the same time, PetroChina, Sinopec and CNOOC abuse their market competitiveness and damage the legitimate interests of consumers because of the internal operating inefficiencies. Especially after China's accession to WTO, according to WTO agreement, China committed to open refined oil market in 2006, the influx of foreign capital in China's oil industry will no doubt cause great impact. Recently, the international oil price changes rapidly, and people gradually realizes that it is imperative to carry out the reform in the oil industry, especially facing internal and external problems now. Although the European and American companies monopolize the oil business, they draw a distinction between the naturally-monopolized aspects and non-natural aspects. As for the non-natural aspects, they bring in competitive system. There will be a focusing introduction of American's Franchise bidding system and British'theory of the price cap regulation, which can be an important reference for our reform in oil industry.According to the analysis on China's monopoly of its oil industry and our existing laws on the oil industry, China's reform can be as follows:First, acceleration of Legislation on the supervision for oil industry, and establishment of the Oil Law; Second, making of the distinction between the naturally-monopolized aspects and non-natural aspects and introducing of competition mechanism; Third, clearing of the rights and duties in the relationship of oil operator. Forth, protection of the legitimate rights and interests of consumer cogent. In addition, it is necessary to bring in Anti—monopoly Legislation for Public Interests.