Domestic gas companies 'forced' to slash prices

State-owned gasoline stations are offering price cuts on 93 octane gasoline in downtown Beijing, in alleged response to fierce market competition from private and foreign-funded gas stations.

Sinopec, Beijing's largest gas station operator, has lowered the price of the popular fuel by 0.4 yuan per liter at its Beijing railway station and Chongwenmen branches, both located inside the Second Ring Road. The promotion runs from 9 pm to 7 am daily.

The company had already cut prices of 93 octane gasoline by between 0.2 and 0.4 yuan per liter at some 27 stations outside the Fourth Ring Road last November. This is a fraction of the 500 Sinopec gas stations that exist in Beijing alone, with the bulk situated in downtown areas.