No.23

We hereby promulgate the Measures for the Administration of the Refined Oil Market, which were adopted upon the consensus of the leaders
of the Ministry of Commerce on December 4, 2006and shall enter into force as of January 1, 2007.
Minister of the Ministry of Commerce Bo Xilai

December 4, 2006

Measures for the Administration of the Refined Oil Market
Chapter I General Provisions

Article 1

In order to enhance the supervision and administration of the refined oil market, regulate the business activities of refined oil,
maintain the refined oil market order and safeguard the legitimate rights and interests of refined oil operators and consumers, the
present Measures are instituted under the Decision of the State Council on Setting Administrative License for the Administrative
Examination and Approval Items Really Necessary to Be Retained (Order No.412 of the State Council) and the related laws and administrative
regulations.

Article 2

The enterprises engaging in the wholesale, retail and storage of refined oil within the territory of the People’s Republic of China
must comply with the present Measures and other related laws and regulations.

Article 3

A licensing system is applied to the refined oil business activities.

The Ministry of Commerce shall take responsibility to draft the laws and regulations for the administration of the refined oil market,
draw up ministerial regulations and organize the implementation thereof, and supervise and manage the refined oil market nationwide
under law.

The administrative departments of commerce of the people’s governments in each province, autonomous region, municipality directly
under the central government and city specifically designated in the state plan (hereinafter referred to as the administrative departments
of commerce of the provincial people’s governments) shall take responsibility to formulate the development planning of the fueling
stations and storage industry under their respective jurisdictions, and organize and coordinate the supervision and administration
of the refined oil business activities under their respective jurisdictions.

Article 4

The term “refined oil” as mentioned in the present Measures refers to gasoline, kerosene, diesel oil and other alternative fuels
which satisfy the product quality standards of the state and satisfies the same purposes, such as ethanol gasoline and bio-diesel
oil.

Chapter II Application for Refined Oil Business License and Its Acceptance

Article 5

For the purpose of applying for the qualification for engaging in wholesale or storage of refined oil, an enterprise shall submit
an application to the administrative department of commerce of the provincial people’s government of the place where it is located,
which shall examine the application and report the preliminary examination opinions along with the application materials to the Ministry
of Commerce, which shall decide whether to grant a license of refined oil wholesaling or storing or not.

Article 6

To apply for the qualification for engaging in the retail business of refined oil, an enterprise shall submit an application to the
administrative department of commerce of the municipal people’s government (or the level of districted city, same below) of the place
where it is located, which shall examine the application and report the preliminary examination opinion along with the application
materials to the administrative department of commerce of the provincial people’s government, which shall determine whether to grant
a refined oil retailing license or not.

Article 7

To apply for the qualification for engaging in wholesale business of refined oil, an enterprise shall satisfy the conditions as follows:

(1)

it must have secular and stable channels to provide refined oil;

(a)

it must have an oil refining enterprise which observes the industrial policies of the state, is capable of processing crude oil of
at least 1 million tons at one time, and whose annual productive capacity of gasoline and diesel oil which observe the product quality
standards of the state is at least 500,000 tons, or

(b)

it must be an import enterprise which has acquired the qualification for refined oil import, or

(c)

it has signed with an enterprise which has acquired the qualification for refined oil wholesale and whose annual business volume of
refined oil is at least 200,000 tons a refined oil supply agreement for at least one year , which shall be consistent with its business
scale, or

(d)

it has signed with an import enterprise whose annual import volume of refined oil is at least 100,000 tons a refined oil supply agreement
for at least one year, which shall be in line with its business scale;

(2)

the applicant must be a qualified Chinese enterprise legal person with a registered capital of at least 30 million Yuan;

(3)

where the applicant is a branch of a Chinese enterprise legal person, its legal person must have the qualification for engaging in
the wholesale of refined oil;

(4)

it must have a refined oil depot whose capacity shall be larger than 10,000 steres and whose construction shall abide by the local
urban and rural planning and oil depot layout planning; the related departments in charge of state land and resources, planning and
construction, safety and supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc. shall have checked and accepted the depot ;

(5)

it must be equipped with such facilities to unload refined oil as conduit pipes, railway special lines, highway transport vehicles
or the ports for transporting refined oil over water whose capacity shall be larger than 10,000 tons.

Article 8

To apply for the qualification for engaging in the retailing business of refined oil, an enterprise shall satisfy the conditions
as follows:

(1)

it must abide by the local development planning for the fueling station industry and the technical specifications and requirements;

(2)

it must have secular and stable channels to supply refined oil, and have signed with an enterprise has acquired the qualification
to engage in the wholesale business of refined oil a refined oil supply agreement for at least three years, which shall be in line
with its business scale;

(3)

the design and construction of the fueling station must abide by the related standards of the state and have been checked and accepted
by the related departments responsible for state land and resources, planning and construction, safety and supervision, public security
and fire-fighting, environmental protection, meteorology and quality inspection, etc;

(4)

it must have professional and technical personnel with regards to the inspection, metrology, storage and fire-fighting and safe production
of refined oil;

(5)

the marine fueling stations (vessels) and land-based fueling stations (sites) for the supply of refined oil used for vessels must
observe, in addition to the above-mentioned provisions, the related provisions on ports, water transportation safety and prevention
and control of water pollution, etc; and

(6)

as regards the fueling stations built in rural areas and only sell diesel oil, the administrative departments of commerce of the provincial
people’s governments shall institute specific conditions for their establishment under the present Measures.

Article 9

To apply for the qualification for engaging in the storage business of refined oil, an enterprise shall satisfy the conditions as
follows:

(1)

it shall have a refined oil depot whose capacity shall be larger than 10,000 steres and whose construction shall abide by the local
urban and rural planning and oil depot layout planning; the related departments in charge of state land and resources, planning and
construction, safety and supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc shall have checked and accepted the depot ;

(2)

the applicant must be a qualified Chinese enterprise legal person with a registered capital of at least10 million Yuan;

(3)

it must be equipped with such facilities to unload refined oil as conduit pipes, railway special lines, highway transport vehicles
or ports for transporting refined oil over water whose capacity shall be larger than 10,000 tons; and

(4)

where the applicant is a branch of a Chinese enterprise legal person, its legal person must be qualified to engage in the storage
of refined oil;

Article 10

To set up a foreign-funded refined oil enterprise, the present Measures, the related state policies and the provisions in the laws
and regulations concerning foreign investment shall be observed.

If the same foreign investor engaging in the retailing of refined oil within the territory of China has at least 30 fueling stations
(including those set up with its investment, those in which it has a holding share and those it has rented), or if the same foreign
investor sells different varieties and brands of refined oil from more than one supplier, the foreign party may not hold a controlling
share.

Article 11

To apply for the qualification for engaging in the refined oil business, an enterprise must submit the following documents:

(1)

an application;

(2)

a property right certificate of its oil depot, fueling stations (sites) and the supporting facilities; the approval certificates and
acceptance documents on oil depot, fueling stations (sites) and other facilities released by the departments responsible for state
land and resources, planning and construction, safety supervision, public security and fire-fighting, environmental protection, meteorology
and quality inspection, etc;

(3)

Business License for Enterprise Legal Person or Circular for Advance Approval of Enterprise Name as released by the department of
industry and commerce;

(4)

Hazardous Chemical Business License as released by the department of safety supervision;

(5)

Approval Certificate of Foreign-funded Enterprise of the People’s Republic of China as regards a foreign-funded enterprise;

(6)

Other documents required by the examination and verification organs.

Article 12

An enterprise which applies for the qualification for engaging in the wholesale business of refined oil shall, provide the legal
instruments and the related materials on its secular and stable supply of refined oil in addition to the documents as provided in
Article 11 of the present Measures.

Article 13

An enterprise which applies for the qualification for engaging in the retailing business of refined oil shall, in addition to the
documents as provided in Article 11 of the present Measures, provide the legal instruments and the related materials concerning
its secular and stable supply of refined oil and the confirmation concerning fueling station (site) planning as released by the administrative
department of commerce of the provincial people’s government.

If an enterprise acquires the land use right of its fueling station (site) through bidding, auction or listing, it shall also provide
the advance approval documents concerning approving the applicant to take part in the bidding or auction as released by the administrative
department of commerce of the provincial people’s government and the Sales Confirmation of the auction (bidding, listing) of state-owned
land use right as released by the department of state land and resources.

With regard to a marine fueling station (vessel), it is also necessary to provide the Opinion concerning Examining the Operating Conditions
of Fueling Vessels as signed by the water area supervision department.

Article 14

An enterprise which applies for the qualification for engaging in the storage business of refined oil shall also provide the confirmation
document concerning oil depot planning as released by the administrative department of commerce of the provincial people’s government
in addition to the documents as provided in Article 11 of the present Measures.

If an enterprise has acquired the land use right of its oil depot through bidding, auction or listing, it shall also provide the advance
approval documents concerning approving the applicant to take part in the bidding or auction as released by the administrative department
of commerce of the provincial people’s government and the Sales Confirmation of the auction (bidding, listing) of state-owned land
use right as released by the department of state land and resources.

Article 15

The administrative department of commerce shall, at its work place, publicize the conditions, procedures, time limit, list of the
materials to be submitted and model application letter for applying for refined oil business license.

Article 16

If an administrative department of commerce of the provincial people’s government which accepts an application deems that the application
materials are not complete or fail to be in line with the related provisions, it shall notify, once and for all, the applicant of
all the content which needs to be supplemented or corrected within 5 workdays since receiving the application. If it fails to notify
the applicant when the time limit expires, the application shall be deemed as having been accepted since the date when the application
materials are received.

Article 17

If the application materials are complete and accord with the stipulated form, or if the applicant has supplemented or corrected
all the application materials as required, the administrative department of commerce of the provincial people’s government shall
accept the application for refined oil business license.

If an administrative department of commerce of the provincial people’s government accepts an application for refined oil business
license, it shall issue a written certificate which bears the special seal of this administrative organ and indicates the date.

If it rejects an application for refined oil business license, it shall issue a written certificate which bears the special seal of
this administrative organ, specifies the reasons for rejection and indicates the date, and shall also inform the applicant of the
right to apply for administrative reconsideration or to initiate an administrative lawsuit.

Article 18

The administrative department of commerce of the provincial people’s government which accepts an application shall seriously examine
the materials submitted by the applicant and put forward its opinions. Its preliminary examination opinion and the application materials
shall, when necessary, be reported to the administrative department of commerce of the higher level for examination and approval
by it.

Chapter III Procedures and Time Limit of the Examination of Refined Oil Business License

Article 19

An administrative department of commerce of the provincial people’s government shall finish the examination and report the preliminary
examination opinion and application materials to the Ministry of Commerce within 20 workdays since the receipt of the application
for wholesaling or storing refined oil as submitted by an applicant.

The Ministry of Commerce shall, within 20 workdays since receiving the application materials as reported by an administrative department
of commerce of the provincial people’s government, finish the examination and verification. If the application meets the conditions
as provided in Article 7 of the present Measures, it shall grant a license for the wholesale of refined oil and release an Approval
Certificate for the Wholesale of Refined Oil; if the application meets the conditions as provided in Article 9 of the present Measures,
it shall grant a license for the storage of refined oil and release an Approval Certificate for the Storage of Refined Oil; if the
application fails to meet the related conditions, it shall inform the applicant of the decision of disapproval and the reasons therefor
in written form.

Article 20

An administrative department of commerce of the municipal people’s government shall complete the examination and report its preliminary
examination opinions along with the application materials to the administrative department of commerce of the provincial people’s
government within 20 workdays since the receipt of the application for the qualification for engaging in the retailing business of
refined oil.

The administrative department of commerce of the provincial people’s government shall finish the examination within 20 workdays since
the receipt of the materials as reported by the administrative department of commerce of the municipal people’s government. If the
application meets the conditions as provided in Article 8 of the present Measures, it shall grant a license for the retail of refined
oil and release an Approval Certificate for the Retail of Refined Oil; if the application fails to meet the related conditions, it
shall inform the applicant of the decision of disapproval and the reasons therefor in written form.

Article 21

If a refined oil wholesaling or storing enterprise newly builds, rebuilds or expands its oil depot or other storage facilities, it
shall abide by the urban and rural planning and oil depot layout planning, and report to the Ministry of Commerce for record after
acquiring the confirmation document concerning oil depot planning from the administrative department of commerce of the provincial
people’s government and going through the acceptance procedures at the related departments.

If a refined oil retailing enterprise newly builds, rebuilds or expands its fueling station (site) or other facilities, it shall abide
by the urban and rural planning and development planning of fueling station industry, and report to the administrative department
of commerce of the provincial people’s government for record after acquiring the confirmation document concerning fueling station
(site) planning from the administrative department of commerce of the provincial people’s government and going through the acceptance
procedures at the related d departments.

Article 22

If a business operating entity of a newly-built fueling station is determined byways of the bidding, auction or listing of state-owned
land use right, the tenderee or the auction entrusting party shall organize the bidding or auction after acquiring the confirmation
document concerning the planning of the subject matter to be bid or auctioned by the administrative department of commerce of the
provincial people’s government of the place where it is located; a bidder may only take part in the bidding or auction after acquiring
the consent and advance approval document from the administrative department of commerce of the provincial people’s government.

Article 23

If the establishment of a foreign-funded enterprise or enlarging of its business scope, or the M&A of domestic enterprise by
a foreign businessman engaging in any refined oil business, it is necessary to send an application to the administrative department
of commerce of the provincial people’s government, which shall accomplish the examination within one month since the date receiving
a complete set of application materials and shall report its preliminary examination opinions and the application materials to the
Ministry of Commerce, which shall make a decision concerning whether to approve it or not within three months since the date of receiving
all application documents.

A foreign-funded enterprise may apply for refined oil business license according to the related provisions of Measures after its establishment,
merger or enlargement of business scope is approved by the Ministry of Commerce.

Article 24

The administrative departments of commerce of the provincial people’s government shall report the reply documents concerning refined
oil retailing enterprises to the Ministry of Commerce for record within 10 workdays, and simultaneously put the basic information
of the refined oil retailing enterprises into the enterprise database of refined oil market management information system.

Article 25

With regard to an application for refined oil business license, if the administrative department of commerce which accepts the application
believes it necessary to hold a hearing, it shall make public announcement to the society and hold a hearing.

Article 26

If a refined oil enterprise intends to set up a branch which engages in the refined oil business, it shall go through the application
procedures separately according to the provisions of the present Measures.

Chapter IV Issuance and Change of the Approval Certificate for Refined Oil Business

Article 27

The Approval Certificate for refined oil business shall be exclusively printed by the Ministry of Commerce. The Approval Certificate
for the Wholesale of Refined Oil and the Approval Certificate for the Storage of Refined Oil shall be released by the Ministry of
Commerce. The Approval Certificate for the Retail of Refined Oil shall be released by the administrative departments of commerce
of the provincial people’s governments.

Article 28

Where a refined oil wholesaling or storing enterprise intends to change any item of the Approval Certificate for the Wholesale of
Refined Oil or the Approval Certificate for the Storage of Refined Oil, it shall send an application to the administrative department
of commerce of the provincial people’s government, which shall, if finding it qualified through preliminary examination, report it
to the Ministry of Commerce for examination and approval. If it meets the conditions to continue engaging in the refined oil business,
the Ministry of Commerce shall release a new Approval Certificate for the Wholesale of Refined Oil or Approval Certificate for the
Storage of Refined Oil.

If a refined oil retailing enterprise intends to modify any item of the Approval Certificate for the Retail of Refined Oil, it shall
send an application to the administrative department of commerce of the municipal people’s government, which shall, if finding it
qualified through preliminary examination, report it to the administrative department of commerce of the provincial people’s government
for examination and approval. If it meets the conditions to continue engaging in refined oil business, the administrative department
of commerce of the provincial people’s government shall release a new Approval Certificate for the Retail of Refined Oil.

Article 29

If a refined oil enterprise intends to modify any item of the Approval Certificate for the refined oil business, it shall submit
the documents to the application department as follows:

Under the premise that the investor of the business entity remain unchanged, and only the enterprise name is changed, the enterprise
shall provide the Circular for Advance Approval of Enterprise Name as released by the administrative department for industry and
commerce or the certificate concerning the change of vessel name as released by the administrative department of ship’s nationality;
the employment certificate and the identity certificate of the new legal representative shall be provided if the legal representative
is changed; the certificate on the legal use right of the business place shall be provided if business place which involves no movement
of oil depot or fueling station is changed.

If the investor of the business entity changes, the original business entity shall implement the related procedures for deregistering
its business qualification, while the new business entity shall apply for the qualification for engaging in refined oil business
over again.

Chapter V Supervision and Administration

Article 30

The administrative departments of commerce of the people’s governments of each level shall intensify their supervision and inspection
of the refined oil market under their respective jurisdictions and investigate and punish the violations conducted by refined oil
enterprises.

Article 31

The administrative departments of commerce of the provincial people’s governments shall, according to the present Measures, organize
the inspection concerning the enterprises which have the qualification for engaging in the refined oil business every year and report
the inspection results to the Ministry of Commerce.

As regards a refined oil enterprise which is found to be unqualified in the annual inspection, the Ministry of Commerce and the administrative
department of commerce of the provincial people’s government shall order it to rectify within a certain time limit; if it is still
unqualified after rectification, its qualification for engaging in the refined oil business shall be revoked by the license-issuing
authority.

Article 32

The major content of the annual inspection concerning a refined oil enterprise is as follows:

(1)

the conclusion and implementation of refined oil supply agreements;

(2)

the operation of refined oil by the enterprise in the previous year;

(3)

whether the refined oil enterprise and its supporting facilities comply with the present Measures and the related technical specifications
and requirements;

(4)

the situation of the enterprise in respect of quality, measurement, fire-fighting, security and environmental protection, etc.

Article 33

A refined oil enterprise which is to suspend or stop its business shall go through the suspension or cancellation procedures with
the license-issuing authority. A refined oil wholesaling or storing enterprise may not suspend or stop its business for more than
18 months, while a refined oil retailing enterprise may not suspend or stop its business for more than 6 months. As regards an enterprise
which fails to go through the suspension or cancellation procedures without reason by exceeding the stipulated time limit, the license-issuing
authority shall revoke its refined oil business license, cancel the Approval Certificate for Refined Oil Business and notify the
related departments.

Upon approval of the administrative department of commerce of the provincial people’s government of the place where it is located,
a refined oil retailing enterprise which is to be relocated because of the adjustment of urban planning, road widening or any other
reason may appropriately extend its suspending period.

Article 34

The administrative departments of commerce of the people’s governments of each level shall supervise and manage the refined oil business
license and the refined oil market without collecting any fee.

Article 35

The Ministry of Commerce and the administrative departments of commerce of the provincial people’s governments shall publicize the
list of the enterprises which have acquired a refined oil business license and the information concerning the change or cancellation
of any enterprise.

Article 36

The Approval Certificate for refined oil business may not be forged, modified, traded, leased, lent or transferred in any other form.

An modified or cancelled Approval Certificate for refined oil business shall be surrendered to the license-issuing authority, any
other entity or individual must not remain it privately.

Article 37

The special refined oil for special users shall be utilized according to the provisions of the state on the quantity, purpose and
scope of supply, and may not be sold to any other irrelevant person.

Article 38

A refined oil enterprise shall operate under law. Any of the following acts is forbidden:

(1)

engaging in business without a certificate or license or with a certificate and license which are not in line with each other or beyond
its authorized business scope;

(2)

failing to use a fueling machine or any other measuring instrument or failing to use a tax-control device as required by any of its
fueling station;

(3)

using any fueling machine which has not been tested or exceeded the term of test or which does not satisfy the requirements for explosion
prevention and protection, or modifying the fueling machine without authorization or skimping oil by other ways;

(4)

mixing impurities or imitations, passing a fake product as a genuine one or passing a defective product as a high-quality one;

(5)

selling the refined oil which has been phased out as expressly ordered by the state or whose quality is incompetent;

(6)

trading smuggled or illegally refined oil;

(7)

driving up oil prices or dumping oil at a low price by going against the laws and regulations concerning price;

(8)

other business activities as forbidden by any law or regulation of the state.

Article 39

A refined oil retailing enterprise shall purchase refined oil from the enterprises which have the qualification for engaging in the
wholesale business of refined oil.

Any refined oil retailing enterprise may not sell refined oil on a commission basis for any enterprise without the qualification for
engaging in the wholesale business of refined oil.

If a refined oil storing enterprise stores refined oil for any other entity, it shall verify the legality of the source of the refined
oil and the legality of the certificate of its client.

Any refined oil wholesaling enterprise may not sell any refined oil used for business purpose to any enterprise without the qualification
for engaging in refined oil business.

Article 40

If any of the following circumstances occurs, the administrative department of commerce which made a decision to grant a refined
oil business license or the administrative department of commerce at the next higher level may, at the request of the interested
person or by virtue of its own power, annul the said decision:

(1)

granting license to an applicant which is unqualified or fails to meet the statutory requirements;

(2)

granting license by exceeding the legal authority;

(3)

a refined oil enterprise failing to meet the related conditions as provided in Articles 7 through 9 of the present Measures any more;

(4)

failing to take part in or pass the annual inspection;

(5)

acquiring the business license by such illegal ways as fraud or bribery;

(6)

hiding the related information, providing false materials or refusing to provide the real materials which reflect its business activities;

(7)

other circumstances under which the administrative license shall be revoked under law.

Chapter VI Legal Liabilities

Article 41

If any administrative department of commerce or any of its staff commits any of the following acts by going