China promises safe gasoline supply

BEIJING—The production of refined oil products in China is still meeting demand despite regional shortfalls triggered by rising international prices, a senior official with the National Development and Reform Commission (NDRC) said Friday.
Zhu Hongren, deputy director of the NDRC’s economic performance bureau, said the government would closely monitor domestic refined oil markets and take effective measures to secure the supply of refined oil products.
The NDRC raised the prices of gasoline, diesel oil and aviation kerosene by 500 yuan ($67) per ton, almost a 10 percent rise, Monday, although it publicly announced in September the freezing of major consumer products subject to government price controls or regulations to curb inflation.
The average retail price of gasoline now stands at 5,980 yuan per ton ($801), that of diesel 5,520 yuan per ton ($740). Zhu said that securing market supply of refined oil products would top the agenda of the NDRC for the next two months.
He said that relevant governmental departments were “actively” deliberating upon a pricing mechanism for refined oil products. “We need to take into account a number of factors to release the mechanism. A proper timing is necessary to avoid drastic fluctuations,” he said.
Although China adopted a market economy and opened itself up nearly 30 years ago, the government still controls the prices of a few key products such as tobacco, sugar and oil.
As winter heating will drive up energy demand, the official said that the central government would guide and coordinate production and transmission in various regions to secure the supply for steam coal and natural gas.
He said that natural gas for civilian use and public utilities would be secured.
To increase oil supply and keep the domestic market stable, China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec) ordered their refineries to work at full capacity. CNPC pushed up its processed oil output by nearly 10 percent in the third quarter compared with the same period last year.
After importing 60,000 tons of gasoline in September and 90,000 tons of diesel oil in October, Sinopec said it planned to buy more diesel oil in November to relieve tight domestic demand. CNPC also imported 200,000 tons of gasoline and diesel oil to the coastal market in the third quarter, and tuned down oil export.—Xinhua