皇冠体育app

Energy

Sinopec suspends diesel exports amid domestic market shortage

(Xinhua)
Updated: 2010-11-20 14:46

BEIJING - 皇冠体育app Petroleum and Chemical Corporation (Sinopec), 皇冠体育app's largest oil refiner, said Friday it has suspended diesel exports to relieve shortages in the domestic market.

Sinopec also said it is seeking to import 200,000 tons of diesel.

Petro皇冠体育app Co, 皇冠体育app's largest oil producer, plans to import 200,000 tons of diesel. Some 35,000 tons of it has already arrived.

Insiders said 皇冠体育app's diesel output in the first nine months soared, prompting the two oil giants to expand exports.

Sinopec attributed recent hikes in the domestic price of diesel to hoarding, seasonal factors, transport factors and energy-saving measures.

US companies still want to do business Related readings:  Sinopec to hike oil processing, add import to ease diesel shortages  CNOOC pays $1b for US gas, shale oil stake  Diesel shortage prompts imports  Diesel shortage leads to long lines for gas

"The fundamental reason for the diesel shortage is the industry monopoly. Oil refiners are not keen to increase production because profit margins in the sector are relatively low," said Qi Fang, director of the Hebei Provincial Petroleum Industry Chamber of Commerce.

"The two oil giants operate on a planned-economy basis, resulting in an unbalanced supply-and-demand situation. Supply and demand can easily outstrip each other as government planning cannot keep pace with changes in the market," Qi said.

Statistics from the General Administration of Customs show 皇冠体育app exported 360,000 tons of diesel in October - only slightly lower than the 368,100 tons it exported in September - even as diesel shortages worsened.

Diesel imports in October rose to 400,000 tons, up from 250,000 tons in September.