Profit at Gas Station Remained High

In February, the international crude oil prices first declined and then increased, so China’s retail prices of refined oil dropped. Meanwhile, influenced by the Spring Festival holiday, the demand for gasoline improved, but that for diesel weakened. Therefore, the overall gasoline prices fluctuated upward, but the overall diesel prices went down. Besides, the retail prices of diesel and gasoline decreased obviously, thus the spread between wholesale price and retail price of gasoline and diesel fluctuated downward.

In terms of the gasoline market, influenced by the consumption tax announcement in January, the overall price of gasoline climbed greatly, and the spread between the wholesale price and retail price fell back from the high level. Later, China’s gasoline prices reached a rational level. However, the downstream demand for gasoline remained strong before and after the Spring Festival holiday, the replenishment at downstream users surged, giving strong support to China’s gasoline prices. In February, the international crude oil prices inched down, and the retail price of gasoline kept dipping. Therefore, the spread between the wholesale price and retail price of gasoline fluctuated downward. According to SCI’s statistics, up to March 6, the spread between the wholesale price and retail price of gasoline reached RMB 1,361/mt, down RMB 325/mt from January 30.

In terms of the diesel market, the demand for diesel weakened in winter. In February, influenced by the Spring Festival holiday, the demand for diesel hit a new low. Meanwhile, the international crude oil prices gave thin support to China’s diesel market. Therefore, China’s diesel prices kept dipping. However, as the diesel prices had declined to a quite low level, the decline in the diesel price at state-owned refineries was limited. In March, the demand for diesel started to improve, so China’s diesel prices started to grow. The spread between the wholesale price and retail price of diesel first increased and then fluctuated downward. According to SCI’s statistics, up to March 6, the spread between the wholesale price and retail price of diesel reached RMB 1,367/mt, down RMB 163/mt from January 30.