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On April 9th, the news that "approximately one hundred gas stations in PetroChina launched a new round of price cuts" immediately attracted great attention. The China Economic Times reporter learned from multiple investigations that the news was "a false alarm." Experts pointed out that although the invisible price alliances of PetroChina and Sinopec are experiencing competition, the monopoly ice of the oil industry will hardly melt in the near future.
PetroChina: The news of a new round of price cuts is inaccurate. “New round of price cuts? I don’t have any relevant news.†Director Zhang Anping of the Public Relations Office of PetroChina was quite surprised by the news. He told the reporter that the last round of price cuts was the sale of the Beijing branch of PetroChina North China and the price cut activity had ended recently.
This news had previously had a desire to come to the wind. On April 5th, Shell Petroleum carried out price reduction promotions at three gas stations in the outskirts of Beijing's outer suburbs. Of these, 93 gasoline and 90 gasoline were increased by 0.1 yuan each. At this time, there was only two days before the end of the one-month price cut activity from PetroChina's Beijing Jinbai Gas Station on March 8. Coupled with the news of the series of preferential measures introduced by Sinochem Total at the beginning of this year, whether CNPC continues to make new rounds of price cuts has been speculated by the market recently.
“I took note of relevant reports this morning and the news of a new round of price cuts is inaccurate.†Ms. Wang, Public Relations Division of PetroChina Beijing Sales Office, explained to the reporter. “Perhaps a few petrol stations are still engaged in promotional activities, but this evening. All gas stations will be restored to their original prices."
Ms. Wang said that the notice requesting that the oil price be restored to its previous level would soon directly release those gas stations that are still implementing the preferential measures. There is no way to talk about a new round of price cuts in PetroChina.
Invisible price alliances encounter competition "with the rise does not fall" is the impression of people on the oil giants. The retail price of domestic refined oil products is set by the NDRC, and retail enterprises can float 8%. However, in the implementation of this system, PetroChina and Sinopec are performing "upgrading 8%" almost every time.
On March 8th, PetroChina started a "monthly service month" at the Beijing Jinbai Station. It involved price cuts for gasoline, diesel, etc., with prices ranging from RMB 0.05-0.2/liter.
For the evaluation of the price reduction behavior of China National Petroleum Corporation, there are currently three versions of the rumor: First, "for the two associations to see"; second, "the performance of the people-friendly approach"; third is to challenge Sinopec, "the pressure of market competition."
Sinopec has challenged this to "strike hard", and people expect that the two big giants' performances of "continual diving" will become mirroring flowers.
“Anyway, price cuts can promote competition and consumers can have more benefits.†Wang Shunzeng, vice president and secretary-general of the Beijing Refined Oil Circulation Association, told this reporter that PetroChina’s move will promote healthy development of the industry.
Professor Pang Changwei of China University of Petroleum holds a positive attitude toward this. He told the reporter that although Sinopec did not follow the price cuts, it has promised to provide better services, and gas stations with foreign capital participation are involved in breaking the monopoly in this area. Bring some delusions.
“This shows that the invisible price alliance between PetroChina and Sinopec has begun to loosen,†said Li Guoqiang, director of the Enterprise Management Research Office of the Enterprise Research Institute of the Development Research Center of the State Council, in an interview with this reporter. The goal of the reform of the oil circulation system is to establish changes in the price of oil on the international market. Adapted to reflect the supply and demand characteristics of the domestic market, crude oil and refined oil price formation mechanism, these mechanisms are far from being formed.
The oil industry monopoly hard ice is difficult to melt "The oil price implicit coalition will continue." Researcher Chen Weili of the China Petroleum and Petrochemical Association told this reporter that the price cuts have to be digested through the promotion of winter inventory factors, but this cannot be a kind of Long-term behavior. The fact that most of Sinopec’s crude oil needs to be outsourced and its number of gas stations is in an overwhelming majority determines that its price reduction is almost awkward.
In the distribution of gas stations in Beijing, compared with more than 500 petrol stations in Sinopec’s bustling neighborhoods, more than 200 of CNPC’s locations are poorly located. Nationally, Sinopec has more than 10,000 gas stations more than PetroChina. Last year, crude oil production of Sinopec and PetroChina were 2.8519 billion barrels and 829.7 million barrels, respectively.
“This form determines the monopoly of the oil industry is hard to melt. After all, only PetroChina, Sinopec, and a few private enterprises are currently allowed to operate refined oil business.†Pang Changwei said that at present private enterprises are concerned about oil sources. They did not dare to participate in the competition; while foreign gas stations such as Shell, Total, etc., due to policies and other restrictions, it takes time to “form climateâ€.
CNOOC Limited acquired Shanghai Xingcheng Petroleum Co., Ltd. in 2006 and has owned 16,600 cubic meters of oil depots. However, it still has no license for refined oil products. In the refined oil market, the space for CNOOC to develop is very narrow.
Li Guoqiang pointed out that the United States, Japan, the United Kingdom and other countries have more than 10 large-scale oil companies competing. In China, “people are hard pressed to make a decision on the lagging oil monopoly industry reformâ€. The first is that the “oil security†problem is a major responsibility and it is difficult to reform; the other is that it is constrained by large oil interest groups; and the third is that private oil companies are not confident about their strong interest-seeking, social responsibility, and resistance. Poor ability to risk.
PetroChina: The news of a new round of price cuts is inaccurate. “New round of price cuts? I don’t have any relevant news.†Director Zhang Anping of the Public Relations Office of PetroChina was quite surprised by the news. He told the reporter that the last round of price cuts was the sale of the Beijing branch of PetroChina North China and the price cut activity had ended recently.
This news had previously had a desire to come to the wind. On April 5th, Shell Petroleum carried out price reduction promotions at three gas stations in the outskirts of Beijing's outer suburbs. Of these, 93 gasoline and 90 gasoline were increased by 0.1 yuan each. At this time, there was only two days before the end of the one-month price cut activity from PetroChina's Beijing Jinbai Gas Station on March 8. Coupled with the news of the series of preferential measures introduced by Sinochem Total at the beginning of this year, whether CNPC continues to make new rounds of price cuts has been speculated by the market recently.
“I took note of relevant reports this morning and the news of a new round of price cuts is inaccurate.†Ms. Wang, Public Relations Division of PetroChina Beijing Sales Office, explained to the reporter. “Perhaps a few petrol stations are still engaged in promotional activities, but this evening. All gas stations will be restored to their original prices."
Ms. Wang said that the notice requesting that the oil price be restored to its previous level would soon directly release those gas stations that are still implementing the preferential measures. There is no way to talk about a new round of price cuts in PetroChina.
Invisible price alliances encounter competition "with the rise does not fall" is the impression of people on the oil giants. The retail price of domestic refined oil products is set by the NDRC, and retail enterprises can float 8%. However, in the implementation of this system, PetroChina and Sinopec are performing "upgrading 8%" almost every time.
On March 8th, PetroChina started a "monthly service month" at the Beijing Jinbai Station. It involved price cuts for gasoline, diesel, etc., with prices ranging from RMB 0.05-0.2/liter.
For the evaluation of the price reduction behavior of China National Petroleum Corporation, there are currently three versions of the rumor: First, "for the two associations to see"; second, "the performance of the people-friendly approach"; third is to challenge Sinopec, "the pressure of market competition."
Sinopec has challenged this to "strike hard", and people expect that the two big giants' performances of "continual diving" will become mirroring flowers.
“Anyway, price cuts can promote competition and consumers can have more benefits.†Wang Shunzeng, vice president and secretary-general of the Beijing Refined Oil Circulation Association, told this reporter that PetroChina’s move will promote healthy development of the industry.
Professor Pang Changwei of China University of Petroleum holds a positive attitude toward this. He told the reporter that although Sinopec did not follow the price cuts, it has promised to provide better services, and gas stations with foreign capital participation are involved in breaking the monopoly in this area. Bring some delusions.
“This shows that the invisible price alliance between PetroChina and Sinopec has begun to loosen,†said Li Guoqiang, director of the Enterprise Management Research Office of the Enterprise Research Institute of the Development Research Center of the State Council, in an interview with this reporter. The goal of the reform of the oil circulation system is to establish changes in the price of oil on the international market. Adapted to reflect the supply and demand characteristics of the domestic market, crude oil and refined oil price formation mechanism, these mechanisms are far from being formed.
The oil industry monopoly hard ice is difficult to melt "The oil price implicit coalition will continue." Researcher Chen Weili of the China Petroleum and Petrochemical Association told this reporter that the price cuts have to be digested through the promotion of winter inventory factors, but this cannot be a kind of Long-term behavior. The fact that most of Sinopec’s crude oil needs to be outsourced and its number of gas stations is in an overwhelming majority determines that its price reduction is almost awkward.
In the distribution of gas stations in Beijing, compared with more than 500 petrol stations in Sinopec’s bustling neighborhoods, more than 200 of CNPC’s locations are poorly located. Nationally, Sinopec has more than 10,000 gas stations more than PetroChina. Last year, crude oil production of Sinopec and PetroChina were 2.8519 billion barrels and 829.7 million barrels, respectively.
“This form determines the monopoly of the oil industry is hard to melt. After all, only PetroChina, Sinopec, and a few private enterprises are currently allowed to operate refined oil business.†Pang Changwei said that at present private enterprises are concerned about oil sources. They did not dare to participate in the competition; while foreign gas stations such as Shell, Total, etc., due to policies and other restrictions, it takes time to “form climateâ€.
CNOOC Limited acquired Shanghai Xingcheng Petroleum Co., Ltd. in 2006 and has owned 16,600 cubic meters of oil depots. However, it still has no license for refined oil products. In the refined oil market, the space for CNOOC to develop is very narrow.
Li Guoqiang pointed out that the United States, Japan, the United Kingdom and other countries have more than 10 large-scale oil companies competing. In China, “people are hard pressed to make a decision on the lagging oil monopoly industry reformâ€. The first is that the “oil security†problem is a major responsibility and it is difficult to reform; the other is that it is constrained by large oil interest groups; and the third is that private oil companies are not confident about their strong interest-seeking, social responsibility, and resistance. Poor ability to risk.
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