Longwei will definitely be a beneficiary of higher diesel/gasoline prices. They are restricted by law to a certain profit margin band, so the benefit will only last as long as their stored inventory does...after that the major refiners will be selling product at a higher price that Longwei will be buying and distributing to retail customers at a higher price, so it's a wash.
Longwei turns their inventory (historically) about once every six months. So they ought to see at LEAST a quarter of improved gross margin.
Medium term, though, that company's fortunes are going to rest on their new tank farm. Which will, if I recall, increase their storage capacity by a whopping 140%. Again, since Longwei have margins fixed by law, it's kind of a low risk operation. I like to think of it as a hydrocarbon toll booth. 7%, please! ;-)
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