BIZCHINA> Opinions
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BIZCHINA> Opinions
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PetroChina's price drop fuels talk of change
(Shanghai Daily)
Updated: 2007-03-16 08:56 "Privately run stations and foreign-funded stations are still being controlled by the two giant state groups on fuel supply. There's no exception," said Professor Dong Xiucheng from China Petroleum University. Although PetroChina and Sinopec still control China's oil product supply as they dominate in the refinery sector and the fuel import right, the huge potential market has still attracted global energy giants including Royal Dutch Shell Plc and BP Plc to build up presence in the country's gas service sector. Also, analysts say crude oil costs are still the key in setting fuel prices in China. Shanghai-based analyst Wang Jing at Orient Securities said PetroChina's price cut couldn't last under current crude prices. "I think the PetroChina price cut is more like a public-relations move to improve its corporate image, which is to address the mounting criticism from the public over the past years to the country'smonopolyindustries," Wang said. (For more biz stories, please visit Industries)
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