With mounting pressure on inflation from high oil prices, the
central government has urged oil refiners and manufacturers to meet
market demand and rein in prices.
The National Development and Reform Commission summoned
executives of leading oil producers PetroChina and Sinopec on
Monday, pressing them to expand refining operations and "ensure
domestic supplies".
Major edible oil manufacturers and guild leaders were also told
to speed up production to check soaring market prices.
Faced with an overheating stock market and economic growth of
11.5 percent in the first three quarters of the year alone, rising
inflation is now a top concern for the central government.
Inflation at 6.2 percent in September has already been seen in
high prices of cooking oil and other foodstuffs, while the
commission has expressed concerns that inflation is now likely to
go from "structural to overall development" because of rising
global fuel prices.
A spokesman for the commission said the main oil majors have
pledged to operate at full capacity refining gasoline and
diesel.
Crude oil prices soared to more than $96 a barrel last week, but
refined oil prices are under the control of the government.
The authorities raised gasoline and diesel prices by about 10
percent last week to compensate refiners and block them from
passing on record-high crude costs to consumers.
"With measures that include maintaining refining equipment and
tapping into our oil-refining potential, we will increase refined
oil production," the commission said.
To further contain higher costs, the government has already
given out subsidies for public transportation in the cities and
rural areas. Local governments have also been urged to extend
temporary subsidies and increase aid to the urban poor.
(Xinhua News Agency November 7, 2007)
