The production and its usage process of the hogwash oil are regulated ineffectively, as well as the market profits lure in China, which forms the illegal industry chain of hogwash oil. Only through the following measures, such as: multiplex governing subjects to make the safe regulation jointly, the systems such as the government subsidies, the price compensation and so on are made in the recovery link, the special enterprises are assigned to recover; the information disclosure system and the reward and punishment mechanism for the reputation are improved; the technical level of the product development by taking the hogwash oil as the raw materials are enhanced, the related standards and the access mechanism are normalized; the methods such as the technical assistance, promoting the market demand and so on are used for the effective supply of the resource-oriented in the whole industry chain governance process, can we build the rational and effective governance mode of the industry chain of hogwash oil.