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PetroChina Thursday cut its retail gas prices by as much as 0.2 yuan per litre in a one-month promotion in Beijing, the Beijing Times reported Friday.

A PetroChina staff changed the price billboard of a gas station in Beijing March 9, 2007. [File]

The price cuts, ranging from 0.05 yuan per litre to 0.2 yuan per litre, cover No. 90, No. 93 and No. 97 petrol as well as negative No. 10 diesel and No. 0 diesel, said the report. The No. 93 petrol sold at 4.9 yuan per litre before the adjustment.

The reduction levels vary from station to station, with a maximum cut in gas stations located at the suburb of Beijing and 0.1 yuan per litre cut in the stations along the Fourth Ring Road.

The price cut gave rise to different interpretations. Some believes that it is merely a market promotion, while others resemble it as a PeroChina's tactic to sharpen its competitive edge in the open market.

An insider who declined to give his name told the reporter that the competition has been intensified as China open its product oil market to the world. Many foreign competitors have expanded their presence in the Chinese market to stake out a place, and there will be more choices for the consumers to gas up their cars.

The drivers welcomed the news. "If I happen to be on a drive to the suburb, I will surely gas up my car there. It is cheaper!" a driver, surnamed Chen said happily.