Friday, May 20, 2011

Gas stations-frequency on price difficult lasting

Gas stations-frequency on price difficult lasting

November 13, 2009/Dong Xiucheng

In addition to oil prices go up and down, around gas stations also played the "price war" market downturn is the main cause of the price war appears, but is difficult to continue for a long time.

Price war is one of the reasons for market subject more, and China's PetroChina, Sinopec, CNOOC, China Aviation oil four giants, there are a large number of foreign-owned and private enterprises. In addition, consumption comparative nervous market downturns, market demand, oil sources adequate incentives. For example, when China's macro-economic hot, two large groups controlling most of the oil source, source of tension will have no price war. Now the entire market is relatively low, is sufficient to protect the oil source, Sinopec, oil prices in the wholesale, private enterprise oil price and cheap, buy then think of ways to sell on the appropriate prices to attract customers.

Unsustainable price war, the national retail market although many, PetroChina, Sinopec gas stations accounted for half of, the core is not in the retail and wholesale. This competition in the economy under more normal circumstances, it is difficult to form ' price war ' because of oil sources in my hands, I want you to make money can make you money, I want you to make money on the oil price to mention your unprofitable, why some gas stations close in previous years, was hung upside down, 1 money buy sells 8 hair is impossible.

General direction of the oil enterprise reform must be market-oriented, because the market competition to improve efficiency, and the vast number of consumers benefit from, but the existing patterns of change requires a process. With the increase of other subjects of market strength, private, foreign investment, or other large State-owned enterprises, when to fight with the big oil, formed the only real competition.

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