Gasoline Price Hike Arouses Concern

15/04/2005

A price rise for cleaner fuel has sparked concerns from motorists and suppliers in Guangdong.

China Petroleum and Chemical Corporation (Sinopec) Guangdong Branch raised oil price by 0.04 yuan per liter Tuesday after it added purifying agent in its gasoline.

The price rise was imposed at the company's Guangzhou, Dongguan, Foshan, Jiangmen and Zhuhai gasoline stations.

The company's other Guangdong stations would use the new gasoline, a meeting in Guangzhou was told Tuesday.

Some purifying agent producers didn't approve of the Sinopec Guangdong company's decision because they said it only used its subsidiaries' products, declining ones from other manufacturers.

Most users said the purifying agent was acceptable, but the price wasn't.

The price hike would generate around 1.4 billion yuan (US$169 million) in Guangzhou market a year for the company, the New Express reported.

Sinopec has 304 gasoline stations in Guangzhou, accounting for 55 percent of the total gasoline stations in the city.

Major cities in China had adopted environmentally friendly gasoline, but Guangzhou government didn't force all vehicles to use the gasoline with the purifying agent.