Print This Page Email This Page
China Tells Domestic Oil Producers to 'Dig Deep' into Potential

Ten days after the Chinese government raised fuel prices, Vice Premier Li Keqiang has urged domestic oil producers to increase supplies and asked local governments to deliver subsidies to affected sectors and people.

"Increasing supplies of fuels such as petroleum and coal is vital to the steady development of the national economy and daily life," Li said during a visit to Langfang and Cangzhou cities, north Hebei Province.

Li made the tour to research energy production and supply and to ascertain how affected sectors and people have reacted to the price rise.

On Sunday, Li visited the PetroChina Huabei Oilfield Company, Huabei Petrochemical Company, two local pump stations at Gu'an County and Bazhou City, rural bus stations, a supermarket in Renqiu City, as well as farmers, urban low-income families and taxi drivers.

Local oil producers told Li they had been running at full capacity to increase supplies after retail fuel prices were lifted.

Li asked centrally-administered companies such as China National Petroleum Corporation and China Petrochemical Corporation as well as local producers to "dig deep into their potential" to substantially increase oil production and supplies.

He also ordered local governments to deliver subsidies to farmers, the fishery and forestry sectors, low-income families, the public transport sector and taxi drivers as soon as possible, and urged them to step up monitoring of illegal price rises.

The government raised the benchmark retail price of gasoline by 16 percent and diesel 18 percent on June 20, meaning mark-ups of 0.8 yuan per liter of gasoline and 0.92 yuan per liter of diesel at filling stations.

Before the rise, soaring world crude prices had pinched domestic oil refiners, which suffered losses because of state-controlled, below-cost fuel prices and some halted or suspended production to avoid further losses.

Short supply has led to long queues of vehicles at service stations in some parts of the country.

(Xinhua News Agency July 1, 2008)

Related Stories
- China Allocates 19.8 Bln Yuan in Subsidies to Offset Fuel Hikes
- Chinese Carriers Cut Flights as Fuel Prices Soar
- Fuel Taxes Set to Be Refunded
- China to Rein in Ripple Effect of Energy Price Increases
- Refiners Lost US$435 Per Ton Before Price Hike

Print This Page Email This Page
372,000 People Lose Jobs After May 12 Earthquake
Textbooks Help for Deaf, Mute
Qingdao Vows to Clean Algae Invading Olympic Sailing Venue
Fengshen Death Toll Rises to 16 in Guangdong
Vaccination Drive to Get Shot in Arm
Ministry of Industry and Information Technology Inaugurated

Product Directory
China Search
Country Search
Hot Buys