Although some people in other countries on the Blue Star have started to look for oil in the past two years, so far, I have not heard of large-scale oil fields found in that country or region.

Therefore, in the oil industry, Daheng Empire has a natural monopoly advantage.

At the same time, kerosene, the main product of petroleum, has huge market potential, even if the empire has an annual oil production capacity of 20 million barrels, even if the Tang Empire still maintains a high price of 10 Hengyuan per barrel of crude oil, the global market can still digest, and even the supply exceeds demand.

In this case, it is impossible for the oil industry of the Great Heng Empire to reduce its price!

Even if it weren't for the fact that it was not for whale oil, tallow oil and other animal and plant lighting oils to compete for the market, the Daheng Empire would not even maintain the price of oil at ten constant yuan, but at a higher price.

The monopoly advantage of the oil industry, coupled with the huge market, has made the oil industry of the Daheng Empire a real profiteering industry.

At present, a barrel of ten constant yuan of oil on the market of the Daheng Empire, its exploitation and crude oil cost is very low, even if some oil fields with high difficulty in exploitation and transportation, the offshore cost of crude oil is generally not more than one constant yuan.

As for the Qingshan Oilfield of Tsingshan Petroleum Company, their exploitation cost is even lower, and the extraction cost of a barrel of crude oil is only a few tens of constant cents......

This mining cost will continue to decrease with the expansion of industrial scale, the improvement of technology, and the laying of oil pipelines.

This also means that even if there is competition in the international market in the future, or if it is blocked by policies, the oil of the Daheng Empire still has huge room for price reduction.

Even if the price is reduced to one constant dollar per barrel of crude oil, the oil industry of the Daheng Empire can still do it without losing money.

The oil industry of the Daheng Empire is profitable, but it does not mean that the four major oil companies or other small private oil companies are also profiteering.

Because most of the profits of the oil industry were taken away by the government of the Daheng Empire through taxes, the taxes of the oil industry were very heavy.

There are not only regular business tax and value-added tax, but also seven or eight types of taxes such as oil extraction tax and kerosene surcharge specifically for the oil industry.

All the taxes added up accounted for about 70 percent of the selling price of kerosene, and the more the oil was extracted and sold, the higher the tax revenues of the imperial treasury and the profits of the four major oil companies

In the end, most of these high taxes and profits from the oil industry were collected by the central treasury of the Daheng Empire, and a small part of the local treasury, but not much.

Under such circumstances, the Daheng Empire expects that in the fourth year of Qiansheng, the central government will be able to obtain more than 100 million Hengyuan in profits and taxes (taxes and profits) from the oil industry.

This is of great importance to the Daheng Empire, which has just ended the War of Reunification, is burdened with heavy pressure to repay its national debts, and is about to carry out all-round economic development, and at the same time cannot put aside its national defense construction.

In the fourth year of the reign of Qiansheng, in the financial budget of the Daheng Empire, the central government's revenue budget increased by a large amount compared with last year, and it is expected to reach about 830 million Heng Yuan, of which the tax revenue contributed by the oil industry alone will exceed 100 million.

From this, one can imagine how important the oil industry is to the current finances of the Daheng Empire.

After the unification of Daheng, in order to restore the people's livelihood, but also to realize the promise to the majority of the people at that time, after the unification of the Daheng Empire, even if the Lin Dynasty was under huge financial pressure, it still lowered the tax significantly, and this caused the Lin Dynasty to unify the Daheng Empire, the tax rate dropped significantly, resulting in the total tax revenue of the entire empire is not high.

But this is also a matter of no choice, the general high tax rate of the major feudal towns of the Great Heng Empire before, that is a special situation, the major feudal towns do not care about the life and death of the people, and raise the tax rate to an extremely high level in order to maintain their rule and conquest.

After the unification, the Lin Dynasty naturally could not maintain an ultra-high tax rate like the original feudal towns, so the Lin Dynasty would probably have to worry that the newly unified Daheng Empire would fall into civil strife again.

During the Daheng Civil War, affected by the secession of feudal towns and frequent wars, the people's income of the Daheng Empire was not high, and a high tax policy was adopted, which made the Daheng people live a very difficult life during the civil war.

And Daheng people are disgusted with this kind of hardship, which is why Lin Ziran was welcomed by the general public after proposing the tax restriction order that year.

After the complete reunification, Lin Ziran fulfilled his promise to reduce the overall tax rate to a normal level, and the overall tax rate was low, especially for many contemporary industrial countries, the largest source of tax revenue, industry and commerce adopted a low tax rate policy.

The tax rate of steel, coal, machinery manufacturing and other industries is very low, and even from the beginning of the third year of Qiansheng, the empire began to set up high-tech industrial zones in a number of key urban areas, and eligible enterprises can obtain tax holidays or preferential tax periods for different years after settling in.

These policies are intended to greatly promote the development of domestic industry and commerce, especially the manufacturing industry, so that enterprises can have more funds to invest in R&D and production.

However, this kind of strong supportive policy has led to the fact that the empire does not receive much direct tax revenue in the field of industrial manufacturing, after all, many enterprises are now in the tax holiday!

In order to restore people's livelihood, the tax rate of the Daheng Empire has been widely adopted and the tax exemption policy has been implemented in many key industries such as manufacturing, which has made the tax rate of the Daheng Empire actually in a low state in the past one or two years.

In addition, the current economic structure of the Great Heng Empire is still dominated by agriculture, the gross national product is dominated by agriculture and animal husbandry, and industry and commerce only occupy a small head.

The proportion of agriculture is too large, and the industry has adopted a supportive policy with a low tax rate and even some industries are exempt from taxes, which also leads to the fact that the total tax revenue of the empire is not large, and it seems that there are a lot of taxes of more than 800 billion Hengyuan a year, but the Daheng Empire is also huge, and there are many places to use money.

In this case, the emerging oil industry became the main engine of industrial growth for the Daheng Empire.

The oil industry now has an output value of more than 200 million a year, which is extremely important for the Daheng Empire, which has an industrial output value of only more than 200 million yuan, not to mention that the oil industry is still one of the few industrial products in the Daheng Empire that can be exported to earn foreign exchange.

Because the oil industry can export a large number of dollars and earn foreign exchange, it has attracted the cordial attention of the upper echelons of the empire, and it is not surprising that even Lin Ziran will inquire about the development of the oil industry every once in a while.

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