Newsletter
GAS STATIONS MAY DISPATCH THEIR OWN VEHICLES TO PICK UP GAS
The Fair Trade Commission recently resolved that, after passage of the Petroleum Management Law, large gas suppliers can no longer disallow gas station operators to send their own vehicles to pick up purchased gas. The reason is that since the cost of transporting gas to remote areas will be subsidized by the Petroleum Fund, the average overall cost of transportation by gas suppliers will no longer be added to calculations of gas prices.
Formosa Plastics' petroleum products will go on the market in competition with those of China Petroleum prior to passage of the Law. Whether China Petroleum will permit gas station operators to pick up gas at that time, and whether Formosa Plastics will follow China Petroleum's example, should be determined by China Petroleum and Formosa Plastics themselves based on considerations of market competition.