The Sinopec (China Petroleum & Chemical Corporation) has lowered the price of oil products once again as from Jan 2. The price for gasoline has decreased by 150 yuan per ton; price of diesel oil has dropped 150 yuan per ton; the oil price has increased by 450 yuan per ton. This is the second time the Sinopec has made adjustment to the wholesale price of oil products since Dec 5th 2004.

Prior to this, the China National Petroleum Corporation adjusted its oil products price on Dec 28 2004, when the price of diesel oil decreased 160 yuan per ton. On Dec 5th, it lowered the gasoline price by 250 yuan per ton, and the diesel oil price was lowered by 150 yuan per ton.

The two leading oil groups' adjustment to oil products price has aroused attention. Adjustment to the wholesale price of oil products is just internal adjustment within oil factory. This doesn't mean the retail price will change accordingly. The retail price of oil products is determined by the State Development Planning Commission. So far the corporation has not received any notice to adjust oil products price, sources from the Sinopec say.

The declining oil price at international market is one of the principal reasons for Sinopec and CNPC to lower the price.

Adjustment to factory price of oil products has always been deemed as prelude of adjustment to retail price. Possibility to adjust retail price of oil products does exist provided oil price at international market keeps going down. At present, the oil price at Singapore, New York and Rotterdam serve as benchmark for the State Development Planning Commission's adjustment to oil products price. Price adjustment will take place if the rise or fall of price at the three places exceeds 8 percent on the basis of prices that were adjusted last time.

By People's Daily Online