On November 7, 2022, the Ministry of Emergency Management of the People’s Republic of China issued an announcement: In accordance with the relevant provisions of the Regulations on the Safe Management of Hazardous Chemicals (State Council Decree No. 591), the Ministry of Emergency Management, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the Health and Welfare Commission, the General Administration of Market Regulation, the Railway Bureau and the Civil Aviation Administration, decided to adjust the “Catalogue of Hazardous Chemicals (2015 Edition)”. 2015 Edition”, adjusting “1674 diesel fuel [closed cup flash point ≤ 60 ℃]” to “1674 diesel fuel”. The Ministry of Emergency Management will complement and improve the “Classification Information Sheet of Hazardous Chemicals”. This announcement will come into effect on January 1, 2023. This announcement came out, the noisy ten years inconclusive “whether diesel is a hazardous chemical” finally has a clear answer, ten ministries jointly determined that diesel, regardless of the size of the flash point, all belong to the hazardous chemicals.
According to the relevant information, diesel fuel is a light petroleum product, a complex mixture of hydrocarbons with a carbon atomic number of about 10~22 mixtures, and is a fuel for compression-ignition engines (i.e. diesel engines). Diesel fuel is mainly produced by the distillation of crude oil, catalytic cracking, thermal cracking, hydrocracking, petroleum coking and other processes of diesel fraction blending (also need to refine and add additives); from crude oil, shale oil, etc. by direct distillation or cracking and other processes. According to the different nature of crude oil, there are paraffin-based diesel, cycloalkyl diesel, naphthenic-aromatic diesel, etc. According to the latest “Classification of Hazardous Chemicals Information Sheet”, from January 1, 2023 onwards, diesel fuel, regardless of flash point size, all belong to hazardous chemicals, that is, the most common 0 diesel fuel on the market belongs to hazardous chemicals, heavy diesel fuel also belongs to hazardous chemicals. The announcement was issued, the refined oil market has caused a greater impact, can be roughly divided into the following points: one, for each link of the diesel supply chain, will be implemented more stringent management system. This announcement, diesel-related supply chain, including diesel production safety permit (safety management, identification of major sources of danger, assessment and monitoring, etc.), storage (safety management, identification of major sources of danger, assessment and monitoring, etc.), operation (hazardous chemical business license, etc.), transportation (transport permit, safety management, etc.) and use (safety management, etc.), etc., all need hazardous chemical business license, and a higher High intensity of safety management and safety supervision. For the steep increase of safety supervision pressure, will largely increase the operating costs of diesel supply chain related links. Secondly, there are only less than two months left for the enterprises lacking the hazardous chemical business license. This announcement makes the diesel-related supply chain enterprises, especially only the diesel business-related enterprises, need to be less than two months to handle the hazardous chemical business license, which is a relatively difficult thing. Now the hazardous chemical business license is good for? According to the relevant information, most of the products operated by chemical enterprises are hazardous chemicals, but need to have a clear scope of business. If you have previously had a hazardous chemical business license, then you only need to add diesel fuel to the scope of operation. However, if not previously, you need to re-apply. On the handling of hazardous chemical business license, some areas are no longer approved, the areas that can still be approved, in terms of the threshold for approval, the difficulty of approval and qualification requirements, compared to the previous have been greatly enhanced. Such as the requirements for the site, personnel requirements, the requirements of the company’s safety standards, the degree of perfection of emergency plans, etc., all need to have certain conditions. Third, it has a positive and positive promotion effect on the business environment of refined oil products. At present, China’s refined oil market, the threshold of enterprises involved in the trade segment is low, and without the requirement of hazardous chemical business license, the qualification requirements for oil blenders, refined oil trading and other enterprises are not high, and many unqualified and strong enterprises are mixed, which also brings many problems to the management of refined oil market. This announcement will largely purge unqualified enterprises, for the rectification of the refined oil market, creating a healthy trading environment has an important role. Fourth, it is conducive to international competition in China’s refined oil market. China’s oil refining industry, in terms of refining technology, management capabilities and other aspects of the gap with foreign markets. In the relatively developed market of refined oil products in Europe and America, the competition in the refined oil industry reflects more the comprehensive strength competition after complete marketization. At present, the Chinese refined oil market is based on the pricing model of the NDRC, which means that competition in the market is managed through government control. China’s refining technology level and enterprise management level are far below the international market, and government control is the key measure to ensure the stable development of Chinese refining enterprises. With the rise of China’s integrated refining and chemical industry, scale brings not only scale advantage, but more integrated and comprehensive competitive strength. The release of this announcement reflects the development trend of internal standardization of China’s refined oil industry, thus achieving further improvement of its own strength, marketization of refined oil products, and ultimately enabling Chinese companies to participate in international competition with ease. This announcement is, in a way, a key point and a landmark event in the marketization of refined oil products in China. This announcement also reflects the further expansion of China’s control over hazardous chemicals. Those chemicals that have a greater impact on the environment through combustion, and those that release toxic and hazardous substances at high temperatures or under other conditions will most likely be included in the scope of management of hazardous chemicals in the future, thus implementing a more stringent management approach.
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