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Wholesale price of refined oil jumps in South China

(CRIENGLISH.com)
Updated: 2007-07-27 14:59

Wholesale prices of refined oil have surged in southern China due to constantly rising domestic oil prices and tighter electricity supply, the Beijing News reported.

According to Wednesday's latest market monitoring data, in Guangzhou, capital city of Guangdong province, wholesale supplies of Sinopec's #90 gasoline have been stopped. The wholesale price of #97 gasoline increased by 250 yuan per ton (US$33) over that of July 13, while the wholesale price of #93 gasoline rose by nearly 100 yuan per ton (US$13.2).

Guangzhou's wholesale price of #93 gasoline jumped from 6,230 yuan per ton (US$823) on July 13 to 6,314 yuan per ton (US$834) on July 25. The wholesale price of gasoline is comparatively stable in Beijing, where #93 octane gasoline sells for around 6,100 yuan per ton (US$806).

Market analysts said that there is still room for gasoline and diesel price rises in the coastal areas. Price increases in gasoline is predicted to be larger than that for diesel. Oil prices in Beijing will keep at a stable level.

According to analysts, the big oil price fluctuation in southeast coastal areas is partly caused by high oil demand. Also, many other private-owned oil enterprises have joined in the competition and are able to make quick responses to the market. Presently, Guangdong province's consumption of gasoline and diesel accounts for about 1/4 of China's total volume.

In the past month, domestic gasoline wholesale prices have increased by 3 percent, while prices in the international market rose by 29.4 percent. The price gap between domestic and international market has reached 1,200 yuan per ton (US$158).

"Currently, increasing wholesale prices do not have much influence on people's daily work and lives. However, it will push the price of refined oil to rise. Insiders foresee increased prices of refined oil," one analyst was quoted as saying.


(For more biz stories, please visit Industry Updates)



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