Gulf Oil makes en­trance with cheap gaso­line

Global Times - - Biz Overview -

Chi­nese ne­ti­zens hailed the open­ing of a gas sta­tion by US-based Gulf Oil in Guangzhou in South China’s Guang­dong Province, as the com­pany of­fered a good price of 5.26 yuan ($0.77) per liter, on top of the at­ten­dance of Manch­ester United soc­cer star Dwight Yorke, bikini girls and other at­trac­tions.

The price is about 1.6 yuan cheaper than what is of­fered by China’s two State-owned gi­ants – China Na­tional Pe­tro­leum Corp (CNPC) and Sinopec – and it’s also 2.4 yuan cheaper than what is ad­vised by the Na­tional De­vel­op­ment and Re­form Com­mis­sion. The gas sta­tion was opened on Satur­day.

The US oil ma­jor, with 117 years of his­tory, joined com­pe­ti­tion with other global oil com­pa­nies such as BP and Shell as China loos­ened in­vest­ment re­stric­tions on for­eign-owned gaso­line sta­tions.

On Sina Weibo, ne­ti­zens are calling for the com­pany to quickly ex­pand into their home­towns.

Jin Lei, an as­so­ciate pro­fes­sor at the China Univer­sity of Pe­tro­leum, told the Global Times on Thurs­day that pri­vate and for­eign-owned gas sta­tions could of­fer cheaper prices as their sup­plies are more flex­i­ble than those of the State-owned gi­ants.

“They, un­like the CNPC and Sinopec, shoul­der no re­spon­si­bil­ity in se­cur­ing na­tional en­ergy se­cu­rity, and when they get cheap sup­ply they can bring it to the mar­ket,” Jin said.

“But when the mar­ket is not good, they could also choose to shut down and not sell any gas,” noted Jin.

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