Several local refineries in China have been forced to shut down due to declining oil prices, National Business Daily reported Tuesday.

After the oil price fell on Oct 17, most local refineries in China started reporting a drop in revenue, said analyst Ma Yan from Chem365.net, a website that provides information services for companies.

Many refineries in East China's Shandong province even began offering below-cost price to reduce their inventories, Ma added. Data from Chem365.net shows that only one small local refinery is in operation in South China.

These small refineries had a low-price advantage over China's two oil giants, Sinopec and China National Petroleum Corporation, said analyst Zhu Chunkai from SCI International, an information service organization.

China announced a cut in the retail price of gasoline by 300 yuan ($48.78) per ton and a reduction in diesel by 290 yuan on Oct 17; the sixth decline since July.