Others News
- PetroChina to produce more fuel
Date: 19-Nov-2007 Sources: (Shenzhen Daily)
PETROCHINA Ltd., China's biggest oil company, is increasing its refining capacity by 12 percent to combat fuel shortages that have disrupted trucking and caused long lines at filling stations, domestic media reported Friday.
The Hong Kong and Shanghai-listed company will raise refining volume to 2.4 million barrels a day, up from last year's daily level of 2.15 million barrels, Xinhua and the China Daily said. They quoted comments by PetroChina vice president Liu Hongbin on Thursday.
'PetroChina will soon increase its refining capacity to ensure a stable domestic market in response to the situation of diesel shortages in some areas,' Xinhua said, citing Liu.
Producers blame the fuel crunch on a shortage of refining capacity due to price controls that bar them from passing on record-high costs for crude oil to consumers. Refiners cut production to limit losses.
There was no word on when additional fuel might reach filling stations. Many are rationing diesel, allowing truck and bus drivers to buy as little as a few gallons at a time. The shortages are most acute in China's booming south.
The government Nov. 5 ordered PetroChina and rival China Petroleum & Chemical Co., known as Sinopec, to produce more fuel. PetroChina is China's largest oil producer, while Sinopec is the country's top refiner by volume.
The government raised retail prices for gasoline and diesel by almost 10 percent Nov. 1 to discourage consumption and narrow the gap between soaring global market prices and domestic retail prices. But it was unclear whether that would be enough to restore refiners to profitability and encourage them to produce more.
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