With the international oil prices approaching $120 per barrel, China’s domestic oil prices have seen their fourth increase this year, leading to private car users spending an additional 27 yuan per refuel, while heavy truck drivers are facing over 1,000 yuan monthly increase in fuel costs, triggering long lines at gas stations across the country. Furthermore, due to the narrowing price difference, gas stations nationwide are facing the dilemma of “the more prices rise, the less profit they make.”
Amid the escalating conflicts in the Middle East, international oil prices have surpassed the $100 per barrel mark for the first time in nearly four years. On Monday, March 9th, the light crude oil futures for April delivery on the New York Mercantile Exchange surged close to $120 per barrel, marking a more than 30% increase. The international benchmark Brent crude oil also spiked nearly 20% during Asian trading hours on March 9th, reaching $109 per barrel.
As international crude oil prices rise, China’s domestic oil prices have been significantly adjusted upwards. According to the notification from China’s National Development and Reform Commission, starting from midnight on Tuesday, the prices of gasoline and diesel in the country have each increased by 695 yuan per ton and 670 yuan per ton, respectively.
Citing data from Zhuochuang Information, a domestic commodity information service provider, “Daily Economic News” reported that the retail price limit for gasoline and diesel in the country will officially see its “fourth consecutive increase” this year, achieving the largest single increase since March 2022.
Following the price adjustments on January 20th, February 3rd, February 24th, and the recent adjustment, the cumulative price increases for standard gasoline and diesel have reached 1,160 yuan per ton and 1,120 yuan per ton, respectively.
A villager in Fangzheng County, Harbin City, Heilongjiang Province, stated, “When we refuel for the machinery used in farming, the gas station is too crowded, and we have to take a queue number the first day, and we can refuel the next day. With the daily increase in oil prices, it’s very tough. We use oil drums to store fuel here. Increased by 80 yuan in two days.”
Another villager from Xixian County, Henan Province, mentioned, “It’s impossible to queue for refueling here, whether in the morning or afternoon, there are always many people. The oil prices have gone up again!”
A report from Yunnan Media Group’s news client “Kai Ping News” highlighted that at 8 p.m. on March 9th, when reporters visited the Zhangbenhe gas station in the Beishi District of Kunming, there were over ten staff members in light blue uniforms working diligently.
To maximize the use of space, vehicles that were originally parked horizontally were rearranged vertically to accommodate more vehicles. Each refueling nozzle at the station had cars lined up, with no vacant spots inside, and vehicles still waiting in queues outside to enter.
In response to the oil price adjustments, many netizens commented, “As international oil prices rise, so do mine, and when international oil prices drop, it’s none of my business.” “Keep hiking it. Anyway, I use an electric car.”
Analyst Meng Peng from Zhuochuang Information stated that for heavy trucks in the logistics industry running 10,000 kilometers per month with a fuel consumption of 38 liters per 100 kilometers, the fuel cost per vehicle will increase by about 1,011 yuan before the next price adjustment window opens.
According to calculations by a reporter from “Lu Net,” the prices for 92 octane gasoline, 95 octane gasoline, and 0 diesel were raised by 0.55 yuan, 0.58 yuan, and 0.57 yuan, respectively. Filling a 50-liter tank with 92 octane gasoline will cost an additional 27.5 yuan.
However, while car owners lament the rising costs of fuel, terminal gas stations find themselves in a predicament of “the more prices rise, the less profit they make.”
The refined oil research team at Zhuochuang Information pointed out that due to the surge in crude oil costs, the wholesale prices of gasoline and diesel domestically have sharply increased, causing a drastic narrowing of the wholesale-retail price difference. Data from Zhuochuang showed that as of March 6th, the theoretical profit margin of main diesel had plummeted by over 58% compared to the previous closing.
The petroleum and chemical information platform, Longzhong Information, stated that looking ahead, it is difficult for the US-Iran conflict to end in the short term, which could lead to risks in supply like the closure of the Hormuz Strait and oil-producing countries reducing output. The possibility of international oil prices continuing to rise cannot be underestimated, with a higher likelihood of the next round of retail price adjustments for refined oil.