The country's two biggest oil companies have not asked the
government to raise prices of their refined products as reported by
some media, a senior planning official said yesterday.
"We haven't received any application from Sinopec or China
National Petroleum Corp to raise prices of finished oil products in
response to rising global crude prices," Bi Jingquan, vice-minister
of the National Development and Reform Commission, said.
The two refineries had made profits in the January-July period,
he told a press conference in Beijing.
Zhang Zhiguo, a senior media manager with Sinopec, told China
Daily yesterday that his company began to lose money in June,
but the losses have not yet offset the profits made this year
through May.
Analysts said that any hikes in refined oil prices would further
push up inflation, which has risen largely because of food
prices.
Bi said the government will continue to reform the pricing
system for oil products.
"China's crude prices have been linked to international markets,
and we will reform finished oil product prices based upon that -
that is the direction."
Price revisions will take into account international oil prices
and affordability of all aspects of society, he said.
The official said the commission had asked the two oil giants to
increase production and imports to ensure supply in Fujian and
Heilongjiang provinces, which suffered oil shortages last
month.
Overall, the country's oil demand and supply is balanced and the
market is stable, he said.
(China Daily September 5, 2007)
