Sinopec cuts internal transfer prices of oil products in 2013

A report by the Securities Daily disclosed that Sinopec Corp., China’s largest refiner, has reduced internal transfer prices of oil products since the beginning of 2013 amid weak domestic demand. The internal transfer price of gasoline was reduced by CNY100 (US$16.06) per ton, while that of diesel fuel by CNY50 per ton.
The report said the downward adjustment of prices was aimed at balancing the interests of regional and provincial sales companies.
By January 11, the average wholesale price of 93 octane number gasoline stood at CNY9,477 (US$1,522) per ton; while diesel fuel was at CNY8,255 (US$1,321) per ton. The price of gasoline was CNY70 (US$11.23) lower than the price at the end of December last year while the price of diesel fuel was lower by CNY50 (US$8.02).
Xu Ying, an analyst with www.oilchem.net said that both Sinopec Corp. and PetroChina had small profit margins due to lower demand from infrastructure projects and the transportation sector. (January 15, 2013)