First of all, in the short term, the demand elasticity of refined oil prices is small, and people will not give up buying petrochemical products such as fuel oil and clothing because the price is too high. But in the long run, the price demand elasticity of oil is still quite large, which will distort people's oil demand. Therefore, the government can really use the price of refined oil (gasoline for driving) as a tool to regulate the market. It is better to raise the price of a certain kind of gasoline, so that consumers can think more about buying small-displacement cars or driving less, thus reducing the negative externalities caused by the pollution of large-displacement cars. High prices can also stimulate the development of new energy in the market. . .

However, as a chemical raw material, the price of oil is also a means of regulation-it can indirectly lead to changes in the price of clothes and fluctuations in the cost of printing newspapers. . .