PetroChina has raised its domestic ex-refinery price of gasoline and cut diesel rates,  bucking industry forecasts of a big increase in both products to track a global oil rally, company sources said.

PetroChina , the country’s second-largest refiner after Sinopec Corp, raised ex-refinery prices for benchmark 90-octane gasoline by about three percent and cut diesel by about 1.5 per cent, effective from August 1.
“The move is perhaps to encourage refineries to produce more higher-octane gasoline, demand of which is rising faster than diesel,” said a senior distribution official from Shanghai.
“But both diesel and gasoline are tight at the moment.”
The ex-refinery rate for northeast refineries was up 100 yuan ($12) per tonne and that of northwest plants up 75 yuan.
The ex-refinery price of diesel was reduced by an average 52 yuan per tonne, they said.
The Shanghai official said PetroChina was facing stiff competition from Sinopec in the gasoline market, especially for  93 and higher octane materials, consumed by the country’s swelling number of family cars.
The domestic market had speculated that Beijing would hike retail fuel prices this month to reflect sharp gains in the global crude and products markets.
But so far Beijing has not announced any price adjustment. It last changed retail oil prices in mid-May.
Beijing sets retail prices for gasoline and diesel using markets in New York, Rotterdam and Singapore, as a reference, but allows state refiners to decide ex-refinery prices.