Total buy highlights plight of private petrol operators

Frances Total SA’s acquisition of a number of private Chinese petrol stations highlights not only the foreign firm’s eagerness to expand in the mass market, but also the tough situation for local non-state-owned oil distributors. Zhao, head of the petroleum distribution unit of the China General Chamber of Commerce, also said about 80% of private fuel storage facilities are empty now as they cannot secure supplies from Sinopec Corp. and PetroChina Co., which control close to 90% of China’s refining capacity. The chamber is asking for 10 to 20 million tons of fuel a year from Sinopec and PetroChina, or five to 10% of the nation’s consumption. (September 6, 2007)