PetroChina, Sinopec oil price war cooling down

Shanghai, February 3 (Gasgoo.com) A refined oil price war between PetroChina Co., Ltd. and China PetroChemical Co., Ltd. (Sinopec), two of the country's oil tycoons, has lasted more than one month but now it shows a sign of cooling down, xinhuanet.com reported today.

Although nearly 150 PetroChina gas stations in Shanghai still fix the retail price of No.93 gasoline at 4.66 yuan ($0.68) per liter, the 90 gas stations of Sinopec yesterday stopped their refined oil sales promotion and restored the No.93 gasoline price to 4.95 yuan per liter from 4.71 yuan. The No.90 and No.0 gasoline of Sinopec is still offered at the preferential prices in Shanghai.

On December 25, 2008, PetroChina took the lead in cutting its refined oil prices by 0.1-0.3 yuan per liter in Shanghai, Hebei, Fujian, Guangdong, and Hainan, and one day later, the total oil sales volume of its gas station located in the Longwu Road, Shanghai, jumped more than 30%.

Sinopec followed suit to announce the markdown on December 26 in the northeastern Chinese city of Shenyang, Liaoning province, and the company's gas stations in other cities, including Shanghai, cut their prices, with Sinopec's No.93 gasoline price fixed at only 4.71 yuan per liter.

However, the refined oil prices have been cut less in cities near Shanghai. The lowest retail price of N0.90 gasoline is 4.6 yuan per liter in Nanjing and 4.43 yuan in Hangzhou, both higher than the promotional price of 4.35 yuan in Shanghai.