China National Petroleum Corporation's barreled gas has been frozen for a long time, with a cumulative increase of only 3.15 yuan per kilogram in the past six years. (File photo)
[Reporter Lin Jinghua/Reporting from Taipei] Bottled gas is a daily necessity for people, especially night market vendors, snack bars, breakfast restaurants, etc., which rely on gas for cooking business. The rise and fall of gas prices affects household expenditures and also affects the operating costs of catering operators. In China, The supply sources of barreled gas are two major companies, China National Petroleum Corporation and Formosa Petrochemical. The long-term freeze-price policy has affected the market. China National Petroleum Corporation's market share in barreled gas has soared to more than 90%. Facing the peak gas consumption season in the coming winter, New Year and holidays, China National Petroleum Corporation must be even more wary.
Looking back at the frozen price increase of China National Petroleum Corporation's barreled gas, in line with the stabilization of prices during the COVID-19 epidemic, it was like an ice age starting from 2021. It was not until November 2025 that the price adjustment was "thawed" and then increased for three consecutive months; it was frozen and increased again in February this year. As the war in the Middle East impacts the international energy market, the Executive Yuan has also announced that the price of barreled gas will not be adjusted until the end of the year. In other words, in the six years since the end of the year, China National Petroleum Corporation’s barreled gas has only been raised for three months, and the cumulative increase per kilogram is only 3.15 yuan. You can’t even afford an egg. When converted into a 20-kilogram barrel, the increase is about 63 yuan, which is not as good as the price of a bento.
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People feel that gas prices are relatively stable, but the cost pressure borne by CNPC continues to accumulate. According to the latest statistics, China National Petroleum Corporation has absorbed a total of 23.75 yuan per kilogram of barreled gas in October, which is higher than the after-tax wholesale price of household gas of 20.01 yuan. It continues to "sell a barrel and lose a barrel." If gas is packed in 20 kilogram barrels, the selling price is about 400 yuan. If it is fully replenished and returned to the original selling price, a barrel would cost 875 yuan to be reasonable without losing money.
The freeze-price policy has stabilized people's wallets and quietly changed the domestic barreled gas market. Before the freeze, PetroChina's barreled gas market share was about 55%, and Formosa Petrochemical's was about 45%. Two years ago, Formosa Petrochemical raised prices for industrial propane, causing Formosa Plastics system dealers to switch to China National Petroleum Corporation. Last year, Formosa Plastics also adjusted prices again. So far, the price difference for barreled gas between China National Petroleum Corporation and Formosa Plastics has maintained at 1.8 yuan per kilogram. As domestic barreled gas has not thaw, according to the latest statistics, PetroChina's market share has soared to more than 90%, while Formosa Petrochemical's market share has dropped to less than 10%.
This is hard to say for China National Petroleum Corporation. In addition to the long-term task of stabilizing prices, there are also hidden concerns about the continued increase in supply. China National Petroleum Corporation's maximum monthly supply is 90,000 tons. With the arrival of winter and the Chinese New Year and festivals, operators will stock up on barreled gas. China National Petroleum Corporation is indeed worried about the supply capacity. The Ministry of Economic Affairs has recently announced an 8.4 billion yuan subsidy for barreled gas operators, including 7.5 billion yuan for China National Petroleum Corporation and about 900 million yuan for Formosa Plastics. This has caused doubts about the subsidies to private companies. However, industry players bluntly said that if Formosa Plastics is not invited to help, the supply of barreled gas may be cut off in the next winter, which will bring unprecedented pressure on PetroChina.
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