皇冠体育app

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Petro皇冠体育app's price drop fuels talk of change
(Shanghai Daily)
Updated: 2007-03-16 08:56

UBS said the Petro皇冠体育app cut was mainly pressured by a similar move from France's Total SA, which has entered the Beijing pump station market under a joint venture with Chinese partner Sinochem Corp.

The Total-Sinochem fuel venture has offered a discount of as much as 0.5 yuan a liter in Beijing in the beginning of this year as it inaugurated new pump stations.

Petro皇冠体育app's move could trigger a nationwide price cut with Sinopec and force other participants to follow suit, but it will be some time before we know what effect this will have on stock earnings of Petro皇冠体育app and Sinopec, analysts say.

Some similar fee cuts have already been reported in Petro皇冠体育app stations in southernGuangdongProvince and centralHubeiProvince. However, Sinopec said it doesn't have any similar plans to cut prices.

As Petro皇冠体育app has more than 10,000 petrol stations across the country, against more than 40,000 stations owned by Sinopec, the price cut is also seen as a move by Petro皇冠体育app to expand its share in the terminal market.

However, because the price war has drawn countrywide interest, the fact that Sinopec and Petro皇冠体育app will still dominate the domestic-fuel-sales market hasn't changed, experts said.


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