China's top economic planning agency said on Wednesday that it
has uncovered six diesel price manipulation cases in a nationwide
inspection.
A total of six petrol filling stations sold diesel at prices up
to 42 percent higher than the government controlled levels to cash
in on ongoing fuel shortages, according to the National Development
and Reform Commission (NDRC).
Many gas stations across the country are experiencing shortages,
with refineries unwilling to raise output in light of low domestic
prices.
Experts said the government should reform the oil pricing
mechanism to reflect international levels and allow oil firms to
transfer cost to customers.
In one case, the Shiyang Gas Station in Chengdu, capital of
southwest China's Sichuan Province, sold the No. 0 diesel at 7.5
yuan (1.01 U.S. dollars) per liter, 2.22 yuan, or 42 percent,
higher than the government-set price of 5.28 yuan, the NDRC
stated.
The other five are: Nantian Gas Station in Weng'an, Guizhou;
Changhong Gas Station in Zhangjiakou, Hebei; gas stations of Yingu
Oil Co. Ltd. in Yinchuan, Ningxia; Jinyuan Gas Station in Xi'an,
Shaanxi; and Mixin Gas Stations in Miluo, Hunan.
The NDRC added the stations have received severe penalties for
price offenses, without revealing further details.
On Tuesday, the NDRC said the domestic fuel supply will return
to normal as the nation's major oil producers and local governments
take concrete measures to ease shortages.
To increase supply, PetroChina and Sinopec are running at full
capacity and trying to draw on stockpiles as much as possible, it
said.
The two oil giants have pledged to provide sufficient oil to gas
stations in Beijing, Shanghai, Tianjin and Guangdong and along some
main trans-provincial expressways.
They are also considering providing more fuel supplies to the
provinces of Yunnan and Zhejiang and also Guangxi Zhuang Autonomous
Region where the shortages are more severe, the NDRC noted.
The NDRC also ordered local authorities to step up market
supervision and crack down on gasoline retailers that withhold
stocks and raise prices without government authorization.
(Xinhua News Agency November 29, 2007)
