Question-and-Answer Session
Operator
(Operator Instructions) The first question is from Prashant Gokhale from Credit Suisse. Please go ahead.
Prashant Gokhale - Credit Suisse
Good morning sir, thank you for the presentation, just a quick question. There have been press reports recently about diesel shortages in China.
Could you tell us if these diesel shortages are because of production constraints or because demand is exceptionally strong? Thank you.
Dai Houliang
Overall speaking, the supply of the diesel in China is stable. There may be some particular situation in certain specific regions as a result of a number of factors.
First of all, the demand for diesel is growing and because of the impact of natural gas the transportation, in the transportation channel there have been some force major factors happening.
But, overall speaking, we believe the supply of diesel in China is stable and steady. Thank you.
Prashant Gokhale - Credit Suisse
Yes. Then could I just ask an additional question? When you say that because of natural gas, what do you exactly mean by that? How is that, how does that impact diesel demand, if you could just explain?
Dai Houliang
To be specific, impacted by the hurricane in the past period, there are some impacts, negative impacts inflicted our specific retail stations. And so, we have some, encountered some force major factors in those specific retail stations because of the hurricane and some weather conditions.
Prashant Gokhale - Credit Suisse
Thank you sir. Thank you very much.
Operator
Thank you. The next question is from Upin Lau (ph) of INET. Please go ahead.
Upin Lau - INET
My question is currently given the high cost and the low retail price there are some retail stations who are reluctant to sell the diesel. What kind of impact does this have to your refining segment?
Dai Houliang
Because of the international oil price hike in 3Q and the tight control by the state government for the oil product price in China, there are some retail stations in China, who now stop to sell certain gas products because of those reasons.
And this inflicted certain impact of pressure on Sinopec's supply to the market. There are some impacts on our Refining segment, which could be fully demonstrated by the figures from our 4Q to 3Q results and in EBIT figures.
But for the Chemical segment, as you asked, there are no big impacts on our Chemical segments.
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