Replies to post #217699 on Zeev's Turnips Patch-No Politics (ZEEV)

[renshen1]

BEIJING, Mar 15, 2004 (AFX-ASIA via COMTEX) -- China Petroleum & Chemical Corp
(Sinopec) (SHA 600028; HK 0386; NYSE SNP) and PetroChina Co Ltd (HK 0857; NYSE
PTR), the country's two biggest oil producers, have begun slashing refined-oil
prices in a price war to win market share in western China's Chongqing
municipality, the 21st Century Business Herald reported, citing sources close to
the matter.

"Sinopec has cut refined-oil wholesale prices for more than 30 days... gasoline
and diesel oil prices are 70-380 yuan lower than PetroChina," one of the sources
said.

"Sinopec lost many customers to PetroChina amid gasoline shortages in the second
half of last year, the price cut by Sinopec is aimed at regaining customers," an
unidentified Sinopec retail official.

Government statistics show PetroChina operatinges 654 gas stations in Chongqing,
the country's largest municipality in terms of population, while Sinopec has 102
gas stations.

Some Sinopec gas stations have also cut retail prices. Gasoline and diesel oil
prices are 0.07-0.08 yuan per liter lower than those at PetroChina's gas
stations.

In response to Sinopec's price cut, PetroChina has already begun cutting prices,
with diesel oil prices down to 3.05 yuan per liter.

The local government has urged the companies to stop the price war to ensure
stable prices.

Sinopec and PetroChina are component stocks of the FTSE/Xinhua China 25 Index.

[e-mail]

al/ng/tr


By Staff Reporter