Tokyo — Japan's largest refiner JXTG Nippon Oil & Energy cut weekly wholesale base prices for all its five major rack petroleum products by Yen 3,500/kl ($5.23/b), according to market sources Wednesday.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
The price decrease would take effect from Thursday, for cargoes to be loaded by tank lorry up till August 21, for gasoline, kerosene, gasoil, lowand high sulfur A-fuel oil -- a blend of gasoil and fuel oil in a 90:10 ratio.
After the price decreases, JXTG's base prices for these products would be Yen 54,500/kl, Yen 57,000/kl, Yen 57,000/kl, Yen 55,500/kl and Yen 55,000/kl,respectively.
These rack prices are applied for shipments from JXTG's refineries across Japan by tank lorries. JXTG is adding Yen 1,000-1,500/kl on top of its base prices when selling to traders and distributors, while gasoline stations that buy directly from JXTG would have to add Yen 3,000/kl on top of the JXTG base price, according to market sources.
JXTG typically announces its weekly prices on Wednesdays, and the prices are valid for cargoes to be loaded from the following day until the next Wednesday.
JXTG has a market share of around 50% and in the past one year its prices were typically closely tracked by the other two major refiners in Japan, Idemitsu Kosan and Cosmo Oil.
JXTG's domestic rack price movements typically tend to follow the trend in crude, with usually not taking into account seasonal and overseas market trends in the oil products markets, according to market sources.
The latest JXTG price change is in line with the week-on-week crude oil procurement costs based on the daily average of Platts Dubai and Oman, which have dropped by Yen 3,500 on average during the period August 6-12 compared to the week before period of July 30-August 5, according to Platts calculations.
JXTG's weekly domestic wholesale price (Yen/kl)
|Delivery Period:||Aug 1-17||Aug 8-14||Aug 15-21||Change|
|Low Sulfur A-Fuel||59,500||59,000||55,500||-3,500|
|High Sulfur A-Fuel||59,000||58,500||55,000||-3,500|
--Daisuke Shibata, email@example.com
--Edited by Kshitiz Goliya, firstname.lastname@example.org