Is the introduction of fuel tax to the parts industry an opportunity or a challenge?

The soon-to-be-launched fuel tax policy has just been announced, and different voices from all walks of life have poured in. At present, some experts call the drop in oil prices the best time to introduce a fuel tax, while others believe that the implementation of the fuel tax policy will have a negative impact on some people. In fact, the drop in oil prices is only a relatively appropriate time for the introduction of the fuel tax, and it is not the dominant factor in the introduction of the fuel tax. Policy-making itself should not only stand at this level. The fuel tax reform is a matter closely related to the national economic and mass consumer interests. The State Council publicly solicited opinions on reforms of refined oil prices and fuel taxes. In order to start fueling, China has taken the opportunity of a global economic recession in recent ten years and the oil price has been rapidly softening. The National Development and Reform Commission has made it clear that all walks of life feel the footsteps of the fuel tax levy. Is there a fuel tax directly linked to the interests of the auto industry and all parties? Is it just a chance or a challenge?

Auto Parts and Manufacturing

The news of the introduction of fuel tax is at the forefront. Recently, people in various industries have expressed their views, actively exemplifying the impact of the fuel tax on the auto industry and which sector of the auto industry will benefit. The fact that the “Development and Reform Commission” expert “a fuel tax will soon begin to levy” and the fact that the international oil price has plummeted is even more provocative for the market. Recently, experts have stated that they have recently introduced a fuel tax policy; at the same time, domestic refined oil prices have recently been lowered. From the market outlook, the main production of small-displacement car companies and new energy vehicles benefit the most.

According to some media news, China FAW Xiali, the largest domestic small-displacement automobile manufacturer, hit a daily limit of two daily stops, while FAW Cars and FAW Fourth Ring of the FAW Group also rose sharply. The sales of small-displacement vehicles will inevitably drive related auto parts manufacturers to benefit from it. Some engine manufacturers such as Dongan Power, Jinma Securities and Other stocks have also performed well in recent days. The fuel tax will have a positive impact on petroleum, petrochemical, and other oil refining companies, as well as new energy companies that take energy substitution as their own responsibility. With the rise in oil prices, new alternative energy sources will be more developed and utilized. The development space for products such as biodiesel will be very broad, and the beneficiary companies include Guofeng Plastics and Fengyuan Biochemicals.

Oil and crude oil affected

With the sharp fall in international oil prices, the adjustment of refined oil prices will lag behind. At present, domestic refined oil prices have already exceeded international levels, so the cut in oil prices will affect the profitability of the domestic oil refining industry in the short term. Regarding the collection of fuel tax, Sinopec and PetroChina are only deducting and paying fuel tax, and they cannot profit from it or increase profitability. Recently, professionals said that international oil prices are most suitable for the introduction of fuel tax reforms. We do not need to change the price of refined oil products in China significantly. As long as a small part of them is used as a fuel tax, tax reforms can be promoted. This is also the Chinese government's term. Hope for a rare favorable period of many years. First of all, the fuel tax policy is conducive to improving the short-term expected performance of the two major groups, and secondly, pushing forward the refined oil prices and adopting a mechanism to straighten out the prices for long-term gains. In 2009, domestic gross profit of oil refining rose from -752 yuan/ton to 68.7 yuan/ton.

Transportation sector

The report stated that the introduction of fuel tax will not affect the toll collection of expressways. It is understood that the "fuel tax" is replaced by 14 administrative fees such as road maintenance fees, passenger surcharges, and transportation fees, and does not include tolls including highways. In spite of this, as the toll of highways has been high, it has been criticized by various sectors of the community. From the perspective of the country's policy orientation in the past few years, the state has strictly controlled the scope of toll collection (specifying the conditions for charging fees, limiting the number of charging years, and requiring policies to repay highways). After the end of the loan, it must stop charging, etc.) and encourage local governments to reduce the toll burden on vehicle owners, especially trucks. After Anxin expects to introduce fuel tax, the control over the conditions and standards of highway charges will be more stringent.

HTCY

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