Fuel price discounts by two oil giants end in Beijing

Shanghai, March 22 (Gasgoo.com) The fuel price discounts by China's two oil giants Sinopec and PetroChina as their promotional activities have come to an end in Beijing, in the wake of the recent hike of the international oil price, Xinhua News reported today.

The two refiners' most gas stations in Beijing have returned to the ceiling retail price set by the government, about 0.3-0.4 yuan per liter more than their previous promotional price. The private or foreign run gas stations in Beijing, however, mostly did not follow suit.

Analysts said the companies have de-stocked part of their fuels through one-month promotional sales, and the recent high oil prices have exerted more pressure on their refining operations.

Under China's oil pricing mechanism, the country's ceiling retail fuel price should be adjusted if the international oil price in Brent, Dubai and Cinta swings more than 4% within 22 straight working days.

Since November 10 (2009) when the price was raised by 480 yuan per ton, China has left the ceiling fuel retail price unchanged. But since early March the global oil price has stood at above US$80/barrel.

China may raise the retail price of domestic refined oil later this month or early next month, by about 200 yuan ($29.3) per ton, an analyst predicted, China Daily reported last week.