The reasons for the increase in domestic oil prices are as follows: 1. Long-term turmoil in the Middle East: A large number of oil fields were forced to cut production or stop production, and the shortage of crude oil supply directly led to the fluctuation of international crude oil prices. In addition, the oil price has exceeded $60 per barrel, and there is a continuous upward trend. The international oil price is controlled by the United States, and China has no pricing power. On the contrary, China is increasingly dependent on oil. 2. The oil tax is too high: there are value-added tax, consumption tax and urban construction tax. On average, a barrel of oil has to pay half of the oil tax. China has a great demand for crude oil, and the profitability of major domestic refineries is still insufficient compared with that of developed countries. With the increase of refining cost, domestic oil prices naturally rise. 3. Low oil prices will severely hit the new energy industry: for example, new energy vehicles are more expensive than ordinary cars. If oil prices fall, new energy vehicles will lose their market value. As China has a large population, using low oil prices will also lead to waste.