(Yicai Global) Jan. 9 -- China National Petroleum has stocked its gas station shelves in eastern Anhui province with self-branded Hulk Power energy drinks to rise against rivaling China Petroleum & Chemical amid a slump in car sales.
CNPC plans to sell the 310-milliliter energy drink cans, made by a local food company, in its network of 20,000 uSmile convenience stores for CNY5 (US 72 cents) each, the Beijing Business Daily reported yesterday. Clients that refuel with more than CNY200 (USD28.80) can buy the beverage for only CNY2.
Consumers' fuel demand is decreasing amid slowing car sales so gas stations will need to make an increasing amount of their earnings from other types of businesses, Lin Boqiang, dean of Xiamen University's energy policy research institute, told the same news source.
The above-mentioned fuel rival Sinopec has so far had the upper hand on the CVS front. In 2018, it ran 27,000 Easy Joy outlets, and had CNY67 billion (USD9.6 billion) in non-oil revenue. Easy Joy sells its self-branded bottled waters, special edition Maotai baijiu products, and coffee.
Beijing-based CNPC chain made about CNY22 billion in non-oil revenue in 2018. The firm's uSmile chain has been selling its own mineral water since 2014.
China's demand for refined oil products will rise by a mere 2.2 percent to 403 million tons this year, slowing growth by 0.6 percentage point from last year, Sinopec predicts.
Editor: Emmi Laine