China’s oil refining giant Sinopec plans to open its distribution networks to outside capital, in a decision that could loosen the large oil companies’ grip on the country’s fuel markets.

Sinopec and its main rival, CNPC, control most of China’s oil sector, from the upstream oilfields to the long pipelines that cross the country to the gasoline pumps at their branded petrol stations. Reformers believe that to break their duopoly, particularly over natural gas pipelines and fuel distribution networks, would make the economy more efficient and spur growth.

Sinopec said yesterday it would allow social capital – in China, a term that refers to state-controlled pension funds and the like – or private capital to take up to 30 per cent stakes in its oil product marketing operations. It has 30,532 petrol stations and more than 10,000km of oil product pipelines.