Gasoil wholesale quotes rose above retail ceiling prices in North China as most market players became more confident in the market, with upward adjustment window for retail ceilings opened.
Wholesale prices of zero pour point gasoil closed at Yuan 8,150/mt in North China's Beijing, Tianjin and Hebei Tuesday, up Yuan 70/mt from the previous day, Yuan 65/mt higher than retail ceilings, C1's assessment showed.
Although offers from Sinopec and PetroChina were still lower than retail ceilings, independent traders pushed up quotations on suspended supply from the two oil giants and firm crude market, market sources said.
"Currently, state-owned traders mostly halted supply and some even sold zero pour point gasoil by the name of gasoil with pour point below zero, because the latter had much higher retail ceilings," said a state-owned trader in North China.
Gasoil wholesale prices were basically flat with or close to retail ceilings in the other regions at the moment.
Before the government raises retail ceilings, market players usually boost oil product wholesale prices and control supply amid price hike expectations, according to past experiences.
Wholesale prices of zero pour point gasoil averaged Yuan 8,100/mt in the domestic market Tuesday, versus the average retail ceiling of Yuan 8,130/mt regulated by the government, C1's data showed.
Private petrol stations, which typically have limited storage capacities, were plagued by negative retail margins because of high purchase costs.
Domestic oil product prices may remain firm in the second quarter, even if the prices have risen in advance and traders and speculators may sell out their resources after the government lifted retail ceilings, market sources expected.
