Is refined oil price regulation a "shock absorber" for crude oil price shocks?

This paper explores whether the government's control of refined oil prices can slow down this impact and play a "shock absorber" function. Adopting the SVAR model and divides the sample into two sub-samples according to the level of price regulation, it is found that the degree of price regulation of refined oil is very high before May 2009. At this time, the price regulation seriously hinders economic growth when the oil price falls. After May 2009, the degree of refined oil price control has been greatly reduced, and price control promotes the increase in industrial investment and GDP to a certain extent when oil prices rise and fall, and plays the function of "shock absorber". In the post epidemic era, in the face of the current geopolitical conflict, it is necessary to continue to implement refined oil price control measures in line with China's situation in the short term, and gradually release oil price control in the long run to form a market price reflecting the relationship between supply and demand. In addition, it is necessary to improve and develop China's crude oil futures market as soon as possible and establish a modern oil circulation system.