High oil prices hit Chinese petrol stations
Monday, 29 October 2007
BEIJING, Oct 28 (AFP): Record world oil prices are forcing Chinese petrol stations to close temporarily due to lack of supplies, state media said today.
Petrol stations were reported closing in the southern provinces of Guangdong and Fujian and in the central and eastern regions of Zhejiang, Shandong and Henan.
"In recent days the demand and supply situation for oil products has been tight," the People's Daily website quoted a PetroChina official from Henan province as saying.
"The main reason is that international oil prices have reached record highs while domestic prices have not followed suit. This has seriously influenced the production activities of refiners."
With government subsidies keeping fuel prices artificially low, gas stations are either running out of supplies or are shutting operations hoping for a state-approved rise, he said.
In some parts of the country, commuters were being limited to purchases of only 100 yuan (13 dollars) of gasoline, or were forced to buy premium fuel due to shortages of low-octane petrol, various reports said.
Truckers were also finding it difficult to tank up with diesel at a time when seasonal demand was expected to rise due to the ongoing harvest season.
Demand for energy in China, the world's second-largest oil importer, has rocketed as a result of explosive economic growth that has been in double digits for four consecutive years.
Imports last year accounted for 47 per cent of the country's overall consumption, and industry observers have warned imports might make up more than 50 per cent of its petroleum needs in a year or two.
During the first eight months of the year, China's net imports of crude oil rose 18.1 per cent over the same period last year.
Chinese demand has been identified as at least partly responsible for currently high oil prices.
Petrol stations were reported closing in the southern provinces of Guangdong and Fujian and in the central and eastern regions of Zhejiang, Shandong and Henan.
"In recent days the demand and supply situation for oil products has been tight," the People's Daily website quoted a PetroChina official from Henan province as saying.
"The main reason is that international oil prices have reached record highs while domestic prices have not followed suit. This has seriously influenced the production activities of refiners."
With government subsidies keeping fuel prices artificially low, gas stations are either running out of supplies or are shutting operations hoping for a state-approved rise, he said.
In some parts of the country, commuters were being limited to purchases of only 100 yuan (13 dollars) of gasoline, or were forced to buy premium fuel due to shortages of low-octane petrol, various reports said.
Truckers were also finding it difficult to tank up with diesel at a time when seasonal demand was expected to rise due to the ongoing harvest season.
Demand for energy in China, the world's second-largest oil importer, has rocketed as a result of explosive economic growth that has been in double digits for four consecutive years.
Imports last year accounted for 47 per cent of the country's overall consumption, and industry observers have warned imports might make up more than 50 per cent of its petroleum needs in a year or two.
During the first eight months of the year, China's net imports of crude oil rose 18.1 per cent over the same period last year.
Chinese demand has been identified as at least partly responsible for currently high oil prices.