Sinopec rewards its subsidiary companies for outsourced gasoline with Yuan 100/mt in July, but it offers no reward for outsourced gasoil, C1 learned from market sources.
This is because the company's gasoline is in relatively tightly supply in some areas amid peak consumption season, while gasoil supply is abundant amid weak demand. "Gasoline supply is slightly short in inland areas, while it is relatively sufficient in coastal areas," said an East China-based gasoline supplier for Sinopec.
At present, Sinopec is outsourcing a small volume of gasoline merely in South China.
Another oil major PetroChina has abundant gasoline supply and shows little interest in outsourcing gasoline, but it is outsourcing a small quantity of gasoil. It is sourcing zero-pour-gasoil in Jiangsu province at Yuan 8,200/mt, including delivery, while little supply is available at this price.
Sinopec halted gasoline outsourcing after quality issues occurred with Sinopec Hunan’s outsourced gasoline in the middle of May. The company resumed outsourcing in South China in the middle of June, due to short supply of exchanged resources and economic benefit.
PetroChina required on Jun 13 its subsidiary companies to suspend outsourcing blended gasoline.
