China Petroleum & Chemical Corporation (Sinopec Corp.)'s 600 wholly-owned gas stations in Beijing have recently put end to their preferential benefit promotion, which began in 2010, according to the Beijing Daily Tuesday.
The high international oil price above $91 per barrel is the pivot of Sinopec's decision to scrap the discount, which also eliminates (partly) the rivalry with its competitors in China's capital.
From the beginning of 2010, Sinopec Beijing branch began to promote its membership system, aiming to whittle the price war with its competitors, said an industry insider.
The branch issued free membership cards to consumers. Upon fueling 1-yuan, 1 point would be added to the consumer's card; and an accumulation of 10,000 points could render 300 yuan ($45) in gas. Sinopec issued 600,000 cards in Beijing last year.
Sinopec is believed to have the ability to halt the price war in Beijing, for it poses a dominant position in the market. PetroChina owns less than 300 stations in Beijing, while other gas stations' account for no more than 200 units in total, said a market participant.
Crude prices on Monday ended the first trading day of 2011 with a 27-month high on positive economic data, according to the Xinhua News Agency.
The high international oil price above $91 per barrel is the pivot of Sinopec's decision to scrap the discount, which also eliminates (partly) the rivalry with its competitors in China's capital.
From the beginning of 2010, Sinopec Beijing branch began to promote its membership system, aiming to whittle the price war with its competitors, said an industry insider.
The branch issued free membership cards to consumers. Upon fueling 1-yuan, 1 point would be added to the consumer's card; and an accumulation of 10,000 points could render 300 yuan ($45) in gas. Sinopec issued 600,000 cards in Beijing last year.
Sinopec is believed to have the ability to halt the price war in Beijing, for it poses a dominant position in the market. PetroChina owns less than 300 stations in Beijing, while other gas stations' account for no more than 200 units in total, said a market participant.
Crude prices on Monday ended the first trading day of 2011 with a 27-month high on positive economic data, according to the Xinhua News Agency.
