Core Viewpoint - The Chinese government is launching a nationwide campaign to eliminate illegal fuel production and sales, which is expected to enhance the competitive environment for legitimate businesses and increase industry concentration [2][3]. Group 1: Regulatory Actions - The Ministry of Emergency Management announced a special campaign from June to December 2025 to crack down on illegal fuel production and sales [2]. - The government will strengthen the enforcement of fuel consumption tax regulations, which may lead to a more equitable competitive landscape for legal enterprises [2]. Group 2: Industry Structure - Approximately 52% of China's 123,000 gas stations are privately owned, contributing to 25% of the total fuel sales in the country [3]. - The total fuel consumption in China is projected to reach 390 million tons in 2024, with private gas stations expected to sell around 100 million tons [3]. Group 3: Refining Capacity and Policy Initiatives - By the end of 2024, China's refining capacity is expected to reach 955 million tons per year, nearing the regulatory limit [3]. - The government plans to control crude oil processing capacity to within 1 billion tons by the end of 2025 and aims to improve energy efficiency in the refining sector [3].