Some gas stations in Shandong started the price war and the oil price fell below 4 yuan per liter

From May of this year, gas stations in some regions of China quietly started the retail price war on gasoline and diesel, and the preferential rate reached RMB 1 to RMB 1.5 per litre. Oil prices in some parts of Shandong have fallen below 4 yuan per liter and have even reached 2.3 yuan per liter in some highly competitive areas.

“This may be related to the upgrading of China's six refined oil products and the clearance of inventory.” Relevant person in charge of the Shandong Refining and Chemical Industry Association stated that the “Shandong Province Implementation Regulations” recently issued stipulated that by the end of September 2017, 7 transmission channel cities and Tai’an Both Laiwu City and the City of Laiwu supply all gasoline and diesel fuels that meet the National Sixth Standard and prohibit the sale of ordinary diesel fuel.

Relevant experts said that the reasons for the price scramble are various, with the effects of structural reforms on the supply side appearing, and affected by factors such as economic restructuring and upgrading, overall slowdown in investment growth, and the development of new energy vehicles, and the growth of refined oil consumption. All-round slowdown.

The domestic supply of refined oil products is lenient. There are no export qualifications for refining companies. The refining capacity has grown too fast and the surplus situation has been grim. “More and more local refining companies have obtained the right to use crude oil imports, which has led to a substantial increase in the production of gasoline and diesel oil. At the same time, private refineries have lost the right to export refined oil, and their refined oil inventories can only be digested at home.” Zhuo Chuang Information Oil Product Analysis Hu Huichun said.

According to the relevant person in charge of the Shandong Refining and Chemical Industry Association, the total refining capacity of the national refinery last year accounted for about 30% of the total refining capacity in China, and the refining capacity in Shandong was 130 million tons, accounting for more than 70% of the national refining capacity, Shandong The total refining capacity is 210 million tons.

At the same time, new energy development and application continue to accelerate. Although the rapid development of the Internet of Things has enabled China to maintain a strong demand for oil products, with the continuous development of railway transportation and urban public transportation, and the gradual popularization of low-carbon travel modes such as Mobai and Ofo, it will effectively offset the increase in car ownership. The demand for oil increased. In recent years, China has also achieved fruitful results in the application of new energy sources such as biofuels, methanol gasoline, and electric vehicles, which further increases the residents’ willingness to choose low-carbon travel.

In addition, the intensified competition in the domestic refined oil market is also one of the major factors triggering this price war. As international oil prices continue to fall, stocks are under pressure and major oil companies begin to seize market share. Relevant experts said that the current retail link is in a golden period of high profits. Through price wars, it can occupy a share of some social gas stations.