As a new entrant of fuel market, biofuel refuelling stations are faced with the keen competition from existing petrol stations. The optimal planning of biofuel refuelling stations strongly affects the profit of biofuel company. However, there are few studies to deal with this issue. This paper develops a bilevel game-theoretic framework that consists of an upper-level model for the petroleum company and a lower-level model for the biofuel company. The mutual restraint relations among biofuel company, petroleum company and the market are all formulated into the models. Finally, the proposed method is validated by a real-world case in China.
Keywords bilevel game-theoretic framework, biofuel refuelling station, petrol station, optimal planning