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It's a term used for unregulated Sewer oil. Sewer oil barons benefit greatly from the ease of collecting this oil in urban zones. Oil buoyancy pushes it to the surface where the oil is easily collected by legit tax paying refineries. However, unregulated Sewer oil merchants don't pay the Chinese govt Taxes, so these outlaws are stuck with the unfavorable Gutter Oil label. The first documented report of unregulated sewer oil was in the 1960s, where sewer oil was exported from Japan to Taiwan and then used in food processing. Most sewer oil is properly refined today and poses no health risk to consumers.
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