China suspends diesel exports to ensure domestic supply

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BEIJING, May 13 (AFP): China has halted diesel shipments and restricted exports of refined oil products, in a bid to ensure domestic supply and stabilise fuel costs amid surging inflation in the country. The National Development and Reform Commission said in a statement that exports of refined oil products would be "strictly controlled" and those of diesel temporarily stopped, except to Hong Kong and Macau. The country's top economic planning agency also urged oil producers to "maintain full capacity operation" to increase output, in the statement dated Thursday. "Economic authorities at all levels and oil producers must fully acknowledge the significance of ensuring refined oil supply in terms of maintaining social stability and facilitating economic growth," it said. The commission also vowed to crack down on hoarding and unauthorised price hikes, according to the statement. China has raised prices for gasoline and diesel fuel four times since October, citing rising global crude oil prices and fanning concerns about politically-sensitive inflation in the world's second biggest economy. China exported 8.63 million tonnes of refined oil in the first four months of the year. It consumed 78.33 million tonnes during the period. Export destinations for refined oil include Singapore, Japan, the United States and France. Last month, hundreds of truckers went on strike at port facilities in Shanghai over rising fuel costs, prompting a stiff police response. China's consumer price index rose 5.3 per cent year on year in April -- a slight easing from a 32-month high of 5.4 per cent in March but well above Beijing's official four per cent target for this year. China's central bank said Thursday it would raise the reserve requirement ratio, which effectively limits the amount of money banks can loan out, by 0.50 percentage points, effective May 18 -- the fifth such hike this year.