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Petroleum industry

PetroChina and Sinopec Raise Gasoline and Diesel Prices Amid Rumors of Downgrade by NDRC

Strategic Insights

— 1 min read

Recent price hikes by PetroChina Co., Ltd. and China Petroleum & Chemical Corporation (Sinopec) have sparked speculation that the National Development and Reform Commission (NDRC) might lower the maximum retail prices of oil products. The two petroleum giants increased their retail prices of gasoline and diesel oil in several provinces and municipalities, including Shanghai, Guangzhou, Shenyang, Chengdu, and Hainan, by CNY 0.05 to CNY 0.42 per liter. However, their prices in Beijing remain unchanged due to higher oil production costs related to the European Union (Phase IV) Emission Standards (Euro IV).

Key Takeaways:

  • PetroChina Co., Ltd. and China Petroleum & Chemical Corporation (Sinopec) raised their retail prices of gasoline and diesel oil in several provinces and municipalities, including Shanghai, Guangzhou, Shenyang, Chengdu, and Hainan, by CNY 0.05 to CNY 0.42 per liter.
  • The price hike occurred in response to rampant talks that the National Development and Reform Commission (NDRC) would once more downgrade prices of oil products.
  • PetroChina and Sinopec have not adjusted their own oil selling prices in Beijing due to higher oil production costs related to the European Union (Phase IV) Emission Standards (Euro IV).
  • The moves by PetroChina and Sinopec are seen as an attempt to push up oil retail prices and force the macro-economy regulator to lower the maximum retail prices.
  • The price hike is expected to have a significant impact on consumers, with increased costs for gasoline and diesel oil.

Statistics:

  • The retail prices of No. 93 and No. 97 gasoline and No. 0 diesel oil in several provinces and municipalities increased by CNY 0.05 to CNY 0.42 per liter.
  • The recent price hike by PetroChina and Sinopec is expected to lead to higher costs for consumers, potentially affecting the overall macro-economy.
  • As of Friday, 03-13-2009 23:59, the latest Comtex SmarTrend Alert indicated an UPTREND on 11-26-2008 for PTR @ $80.43.

Sources:

  • SinoCast Daily Business Beat via COMTEX (Mar 17, 2009)

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