Research On Abuse Of Market Dominant Position In The Domestic Refined Oil Market

Refined oil, as the downstream products of petroleum which is a non-renewableresource, has enormous economic and strategic significance for the promotion ofnational development, and plays an important role in upholding national security andmaintaining social stability. Refined oil and our life are inseparable from family lifeoil to industrial oil, that is to say, refined oil plays a vital role in economicdevelopment in our country. However, the domestic refined oil market is far fromperfect operation. From1990s to present, although the domestic refined oil graduallymeets the requirements of the development of the socialist market economy, it stillexists many problems, for instance, lack of competitiveness, imperfect pricingmechanism and coexistence of profit and loss in large oil companies and so on.These problems have influenced the development of the refind oil market, affectedthe choices of operators’ business strategies, even more impacted on the immediateinterests of each consumer.By making a probing analysis of the development history and existing problemsof the domestic refined oil market, it is can be found that the deeper reason whichaffects the development of the domestic refind oil market is that China NationalPetroleum Corporation (CNPC) and Sinopec Group (Sinopec) abuse their marketdominant position which is based on strong market power in the domestic refined oilmarket. This abuse makes it more difficult for other operators to compete, whichleads to the weak competitiveness of the refined oil market. Therefore, CNPC andSinopec hold the line on refined oil charges more easily, and obtain higher monopolyprofits. If the National Development and Reform Commission (NDRC) attempts tolower the refined oil price, they will ask the NDRC to raise the price and apply forgovernment subsidies on grounds of refining losses, and even artificially create theillusion of “oil crisis” on various excuses like “overhaul”. Consequently, the key tofurther development of the refined oil market is how to prevent CNPC and Sinopecfrom abusing their market dominant position.Based on the existing researches, two research methods are employed in this thesis such as literature analysis and data analysis. The basis of this thesis are studyand summarization of various documentations such as monographs, periodicals,thesis and newspaper, as well as large data analysis. Firstly, it is an analysis ofrefined oil market structure in China in the present days. Through a briefintroduction of the development history of the domestic refined oil market and ananalysis of the problems and the causes existed in China, the conclusion is made thatCNPC and Sinopec have market dominant position, therefore the domestic refinedoil market structure is oligopolistic. Secondly, it is a summarization of four types ofCNPC and Sinopec abusing of market dominant position in the domestic refined oilmarket, they are discriminatory treatment on price, refusal to deal, unfair tradingprices and unreasonable tie-in sales. Then it makes an in-depth analysis on theconception, composition elements and confirmation criteria of these four kinds ofabuse. Lastly, it is some suggestions about the regulation of abuse of marketdominant position in the domestic refined oil market based on Antimonopoly Law,including perfecting the supervision for monopoly in the refined oil market,encouraging operators to disintegrate the monopoly with operators commitmentsystem, optimizing the antimonopoly private action system and increasing the degreeof penalties for monopoly.