Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / Energy Tools: Save | Print | E-mail | Most Read | Comment
South China Not Lacking in Oil
Adjust font size:

There is no oil supply shortage in South China, including Guangdong Province, Asia's top refiner Sinopec said yesterday in a rebuttal to recent media reports.


"Our own filling stations have enough oil supply for consumers' use. We do not see an oil product shortage at all," Sinopec spokesman Huang Wensheng said yesterday.


Sources from Guangdong Oil and Gas Association confirmed that Sinopec has stopped selling oil products to other companies and private filling stations in the province in order to feed its own outlets.


Yao Daming, an oil analyst with the association, said State-owned giants like Sinopec and PetroChina are more than capable of securing oil supply.


However, Yao added that when global oil prices surge, there is a tendency for local dealers to store oil products and await a price hike in the local market.


"Some oil dealers are waiting for a price increase by storing more and selling less. Their action, in return, creates the impression that oil supply seems tight," Yao said.


Statistics from Guangdong Oil and Gas Association show that the wholesale price for some oil products has increased by 5 percent.


Sinopec's Huang did not endorse such figures, but he did imply that the wholesale price of major oil products, such as gasoline and diesel, is subject to adjustment by major suppliers like Sinopec and PetroChina.


An industry insider told China Daily yesterday that China's top economic regulator National Development and Reform Commission (NDRC) had decided not to increase the retail price this year.


Zhao Youshan, director of the Petroleum Distribution Committee of the China General Chamber of Commerce, said it was the right decision.


Zhao's organization represents 138 private oil companies across the country.


"The increase in oil retail price will trigger ripple effects by pushing up other commodity prices, such as grain and livestock. Therefore it is important to keep oil prices stable," Zhao said.


With the global crude price soaring and the local oil retail price under tight control by the NDRC, Sinopec will inevitably suffer from refining losses in the third quarter, said Liu Gu, an energy analyst with Guotai Jun'an Securities.


Media reports have said that some provinces in South China face a tight supply of oil products.


(China Daily August 2, 2007)


Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- Crude Prices Set Record Close Above US$78
- Oil Giant Plans to Build New LNG Terminal
- More Oil Reserve Bases to Be Built
- Sinopec Reports 2.12 Percent Rise in Crude Output in First Half Year
- China Shouldn't Become 'Energy Scapegoat'
- Oil Supply, Demand to Turn Better in 2006
Most Viewed >>
-Commercial banks allowed to access futures market
-WB cuts China's 2008 GDP growth to 9.6%
-Economic policy needs 'rethink'
-Coal reserves at China power plants up
-Macao's gaming market expands further

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号