Why is the fuel at International Energy gas stations cheaper?
1 Answers
China International Energy's fuel is cheaper primarily because it is a private enterprise. Here are the reasons why International Energy's fuel is cheaper: 1. Surviving in competition with the 'Big Three' oil companies: Currently, the domestic fuel market is largely monopolized by the 'Big Three' oil companies. For private gas stations to survive, they need to engage in price wars to stabilize sales and secure a certain market share. 2. Lower fuel processing costs: Private gas stations are more stringent in controlling production costs. Their fuel processing is not as refined as that of state-owned gas stations, leading to lower costs and consequently lower fuel prices. 3. Lower transportation costs: Private gas stations use a point-to-point fuel transportation method, directly transporting fuel from local refineries to the gas stations.