RSSNewsletterSiteMapFeedback

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
Beijing's diesel oil supplies tighten up
Adjust font size:

With winter approaching, Beijing is seeing its diesel oil supplies become tighter and tighter. Many local filling stations are not allowed to provide as much diesel fuel oil as their customers want. They must offer limited amounts of diesel to a restricted range of customers. Some filling stations beyond the fifth ring road, very far from downtown, have even been forced to cancel providing this kind of fuel because no supplies are available to them.

An anonymous employee with a state-owned filling station said that the sales restrictions were not out of their choice but rather came from mandatory orders from above. Another unnamed staff member working at a Sinopec-owned fuel station speculated that the current tight supplies of diesel oil resulted from artificial manipulation.

But privately owned filling stations are in an even worse situation because their oil supplies are gradually running out. Some people have even begun to cry that the oil crisis has finally arrived.

On October 30, a source inside Sinopec denied the existence of a so-called "oil crisis" and revealed that Sinopec's refineries such as Beijing Yanshan Petrochemical Co., Ltd. are in full production mode. The source said that the current situation was created by market supply and demand. 

Analysts agree. Wang Gang, an oil industry analyst from Great Wall Securities, said that Sinopec, the major domestic provider of oil products, is heavily relying on expensive imported crude oil, accounting for 60 percent of the total amount of crude oil that it needed last year. Due to the high costs of crude oil plus additional refining costs, the more products the company outputs, the larger the losses it suffers. Therefore, the firm has cut production, causing diesel oil supplies shrink.

But as winter draws near industrial sectors such as mining, transportation, construction and fishery are generating massive demands for more diesel oil, said Li Yu, an analyst with industry website www.oilboss.cn.

Some market analysts have even pointed out that China's two oil giants, PetroChina and Sinopec, would continue to experience hardships if the international oil prices continue to remain high and if China does not take measures to adjust the prices of oil products.

(China.org.cn by Pang Li, November 1, 2007)

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

Comment
Username   Password   Anonymous
 
China Archives
Related >>
- Fuel shortage as crude oil prices rocket
- Fuel prices raised by 8%
- Oil price hikes put refiners in a bind
- Sinopec stepping up exploration efforts
Most Viewed >>
-China set to hit the brakes on rising yuan
-Power to resume shortly in worst-hit area by snow
-Macao's gaming market expands further
-Online operators are on top of the game
-Insurance firms set to stump up billions

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 © China.org.cn. All Rights Reserved E-mail: webmaster@china.org.cn Tel: 86-10-88828000 京ICP证 040089号