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NDRC talks with oil firms on supply shortage

By He Shan
0 Comment(s)Print E-mail China.org.cn, November 2, 2011
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A worker counts money while fueling a?car at a gas station. [Xinhua] 

As the country grapples with an oil shortage, the National Development and Reform Commission (NDRC), China's top economic policymaker, has held talks with China's two largest producers China Petrochemical Corporation (Sinopec) and China National Petroleum Corporation (CNPC), ordering them to ensure an adequate supply of diesel for agricultural use.

The talks came after the oil giants were accused of hoarding oil due to price cuts imposed by the government on Oct. 9, leaving many small privately run gas stations scrambling to find other suppliers.

Industrial analysts and gas station owners blamed the oil shortage on the hoarding by Sinopec and CNPC, who hope to sell stockpiles of oil in the future at a higher price, citing the state-provided monopolies these companies enjoy.

China reduced retail prices for gasoline and diesel by 300 yuan (US$47) per ton starting Oct. 9, the first cut in 16 months.

China's business press carried the story above on Wednesday.

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