THE Beijing branch of China National Petroleum Corporation (CNPC), lowered petrol prices at about 100 gas stations in Beijing on Friday.

The price cuts, ranging from 0.2 yuan to 0.05 yuan, would “return profits of the company to the public,” said sources with the company, adding the price cuts would last for a month.

Unlike the previous nationwide price cuts directed by the price regulator, only CNPC’s Beijing branch lowered its petrol prices, and China Petroleum and Chemical Corporation, CNPC’s major rival, has yet to react.

“Foreign-funded companies are rushing into the country as China opens its crude oil and refined oil sectors,” said an analyst. “Price cuts will become an important and often-used tool for competition.”

The cuts could lead to national price cuts, experts said, as some gas stations said they would follow suit.

Chinese motorists have experienced 12 gas price hikes since 2003, including two in 2006.

(Xinhua)