China’s private oil companies to receive 5 mln-ton state oil stockpile
China's regulator, the National Development and Reform Commission (NDRC), is drawing up plans for a 5 million-ton product oil stockpile for struggling private oil companies, according to the China General Chamber of Commerce The Chairman of the chamber’s oil distribution committee, Zhao Youshan, said at a news conference that the NDRC was hoping to complete the project by October this year.
He added that the regulators had not yet agreed on the specific methods that will be used to supply the oil. While it is unlikely that the state will force the major refiners, the China National Petroleum Corporation (CNPC) and the China Petroleum and Chemical Corporation (Sinopec) to provide oil to the private firms, the government could buy the oil from the two companies and sell it on at a fixed price.
Fixed local oil-product prices mean that the refiners are forced to operate at a loss when the global crude price exceeds that of around $60 a barrel. Last week, the NDRC again refused demands by the big state-owned firms to lift wholesale and retail prices. China’s two state-owned refiners decided last month to cut off supplies to private gas stations and give priority to their own sales networks. Currently, about 10,000 of the total 50,000 private oil retail stations are facing closure because of product oil shortages, the China General Chamber of Commerce added. (petrolplaza)
ADVERTISEMENT
MNB Stresses Importance of 'Conservative' Dividend Policy to...
Poland Jobless Rate Unchanged in October
DHL Supply Chain Relocates Domestic Operation to Páty
More Guest Nights y.o.y. for Year-end
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
.jpg)
