Consumption Expenditure News
- Fuel supply to be boosted, room for price rise
Date: 22-Nov-2007 Sources: (Shenzhen Daily)
THE country would increase fuel supply to ease shortages, particularly of diesel, and still saw room for further price rises as domestic rates lagged world oil markets, Premier Wen Jiabao said yesterday.
'We will increase the capacity of crude oil production through various channels and increase the supply of oil products, particularly diesel,'Wen told reporters on the sidelines of a summit in Singapore.
State-owned oil majors such as Sinopec on Monday set out detailed plans to end a lingering supply crisis, bending to pressure from the government to fulfill their 'social responsibility?by selling more cheap fuel.
A 10 percent rise in State-set motor fuel prices this month aimed to end China's worst fuel crisis in four years by easing refiners' losses in the controlled domestic market. But they are still in the red, with U.S. crude near US$100 a barrel.
'There is still a gap,'said Wen. 'The recent increase in oil product prices is to enable China's prices to get closer to international prices to ease shortages.'
Facing inflation that rebounded to a decade-high level last month, however, leaders may not carry out a second hike. Instead they are using political clout to force State-owned companies to put government interests before corporate profits.
China is also looking to improve energy efficiency, which is just one-tenth of world leader Japan.
'China is determined to reduce energy consumption per unit of GDP by 20 percent in five years,'Wen said. 'Meanwhile, we can also reduce emissions of carbon dioxide through reforestation and reducing population.'
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