Price competition on fuel
8 June 2007
China Petroleum & Chemical Corp (Sinopec) is offering a discount of RMB0.1 (US$0.01) per liter on gasoline at six stations in Guangzhou this Sunday, according to Sohu Finance (in Chinese). The promotion is associated with Sinopec's undercutting strategy to fortify market position in the wake of two oil price cuts in Beijing earlier this year. Total-Sinochem Fuels, a joint venture between state-owned Sinochem and French oil company Total focusing on oil products retail, lowered the retail price for gasoline by about 8% when it opened two new stations in Beijing in March. China National Petroleum Corp (PetroChina) cut its prices by up to RMB0.2 (US$0.03) per liter shortly afterward. PetroChina's Guangzhou branch declined to comment on the move.