The National Development and Reform Commission of China said that the government will increase both gasoline and diesel prices, effective today. Both the prices will increase by 300 yuan ($43.98) a metric ton, representing approximately 4%–5% over current average gasoline and diesel retail ceiling benchmarks of yuan 7,310 ($1,072) and yuan 6,570 ($963) a ton. This is the sixth fuel price adjustment made this year after the government brought the new fuel pricing system which links domestic rates with the international crude oil price changes. The Chinese government’s initiative to raise the ceiling on refined product prices is a welcome development for refiners. Refiners in China had been witnessing a weakness in refining margins due to an increase in crude prices and the government’s conservative role in refined product (particularly gasoline and diesel) pricing. The government caps the prices of refined products to control inflation. These ...

The Government’s initiative to lower fuel prices may hurt Chinese refiners in the short term. Prices for gasoline, diesel and jet fuel will drop by 3.3%, 3.7% and 5.5%, respectively. The National Development and Reform Commission reported that the corresponding retail prices for gasoline, diesel and jet fuel will be about $954, $846 and $699 per ton.

Refiners in China had been witnessing an upswing in refining margins, led by the rise in fuel prices thrice during the year. This is the first price cut in 2009 following three consecutive increases.

The Chinese Government has played a conservative role in pricing of refined product (particularly gasoline and diesel). It is the policy of the Government to cap prices of refined products to control inflation. Price regulation – which did not allow the companies to pass on high refining costs to consumers – is one of the key reasons for

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Murphy OilÂ’s (MUR) share price has experienced volatility along with the price of crude. However, its chart and fundamentals reflect stronger growth than its competitors. The company recently hiked its annual dividend from 75 cents per share to $1.00.

Company Description

Murphy Oil Corporation is an international oil and gas player, operating through various subsidiaries in oil and natural gas production the United States, Canada, the United Kingdom, Malaysia and Ecuador. MUR conducts exploration activities worldwide.

The company owns refining and marketing operations in the United States and the United Kingdom. Murphy USA Marketing Co. (Murphy Oil USA, Inc.) operates retail gasoline stations under the Murphy USA® brand across 20 states in the U.S. These are high-volume, low-cost retail gasoline stations, primarily in the parking areas of Wal-Mart Supercenters.

Murphy Oil USA, Inc. also operates a network of 12 Company-owned terminals. The terminals, along with numerous third-party terminals, provide

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