Composition of oil price
Crude oil cost, China's way of obtaining crude oil includes exploitation or import, and logistics cost, mainly including transportation and storage. Consumables such as pipelines and vehicles belong to transportation cost, while oil depots belong to storage cost.
Refining cost is related to crude oil products and refining technology. The higher the crude oil product, the lower the refining cost. For example, PetroChina can refine 70% of the oil equivalent of crude oil into refined oil, and the other 30% will generate chemical products and tax costs, including value-added tax and consumption tax, that is, fuel tax and urban construction tax. In addition, when the international oil price falls to a certain price, oil companies need to pay special income.