Longwei Petroleum Investment Holding Ltd. is one of the leading diesel, gasoline, fuel oil, and solvent oil distributors/wholesalers in Taiyuan City, Shanxi Province, China. The Company operates through their subsidiary, Longwei Trading, located in Taiyuan City. Longwei sells products mainly to large gas stations, coal plants, and power supply companies. They also sell, on a smaller scale, to small, independent gas stations. The Company trades on the OTCBB.
Longwei Petroleum owns a state-of- the-art fuel storage facility at Taiyuan City. The facility includes 14 storage tanks with a capacity of 50,000 metric tonnes. The Company has been in the fuel oil and petroleum product distribution wholesale business since 1995. Shanxi Province has no oil fields or oil refineries and provides a good opportunity for Longwei to market fuel oil and petroleum products. Shanxi Province’s demand for fuel oil has experienced double-digit growth the past several years.
The Company works to earn profits by buying diesel, gasoline, fuel oil, and kerosene at competitive prices and selling them to other wholesalers. They also earn revenues by acting as a purchase agent where they charge an agency fee. This is a fee charged to wholesalers without a license to purchase directly from refineries. In addition, Longwei Petroleum owns a gas station located on their property where they generate additional profit and revenue.