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CNPC and Sinopec are already equipped with all necessary operational elements. In addition, the competitive edge of the State-owned oil corporations has been sharpened in recent years.

Currently, the companies that can really impact the CNPC and Sinopec giants are State-owned oil companies specializing in single product operations and the reorganized large-scale State oil corporations.

China National Offshore Oil Corporation, for instance, is emerging as a promising player, setting up large joint venture refineries in the south of the country. Their presence is bound to intensify competition in the petrol arena.

The author is an economist with the State Information Center

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