Source: CCTV.com

11-24-2008 13:25

Following oil prices on the international market, Shanghai's privately-run gas stations are providing more discounts to boost sales. But the country's two oil majors, PetroChina and Sinopec, have not yet followed suit.

Following oil prices on the international market, Shanghai's privately-run gas stations are providing more discounts to boost sales.

From the sign at this privately-run gas station, we can see that 90-octane is now priced at 5.3 yuan per liter, compared with the 5.57 yuan it was before. The price for 93-octane has also been discounted, down by 0.15 yuan per liter. Some taxi drivers say this might be the lowest price in Shanghai. And long lines can be seen here, even at midnight.

One customer said "I came from several kilometers away, because it's cheaper here."

But some employees at another privately-run gas station say their discounts had no effect on sales. Many car owners still prefer PetroChina gas stations for various reasons. For example, PetroChina allows the use of bank cards, which are more convenient to use than cash.

One customer said "I always get gas here, because my bank card can only be used here."

One customer said "It's not convenient to go to another station. 0.1 yuan is not too much."

There are other disadvantages to privately-run gas stations, like the fact that they tend to be smaller and sell lesser-known brands of gas. The tiny discounts they provide cannot attract high-end users, who are not very price-sensitive. Market insiders say these private gas stations need to do more to enhance their competitiveness, if they want to have an influence on market prices and put real pressure on their state-owned rivals.

Editor:Xiong Qu