Refinery promises supply gains

Source: Xinhua  |   2008-6-28  |     NEWSPAPER EDITION

CHINA'S top oil producer said yesterday it planned to further increase supply of refined oil after an earlier fuel price rise by the government.

The China National Petroleum Corporation said it would process 880,000 tonnes, or about 3 percent, more crude oil in the third quarter than the same period last year.

Meanwhile, its third-quarter production of refined oil would be 580,000 tonnes more than the same period last year, said the company. It had an output of 17.6 million tonnes of gasoline, diesel and kerosene in the same period of 2007.

In June, nearly 6 percent more crude oil will be processed than in May, according to the company.

"We'll focus on meeting the demand of quake recovery work, farm production, Olympics, major projects and public utilities," it said.

By noon yesterday, the company had 312,000 tonnes of gasoline and diesel in stock in quake-hit Sichuan Province, enough for 20 days of use.

The pledge came as crude futures surged to break US$140 a barrel for the first time on Thursday on fears of further oil price rises and Libya's threat to cut production.

Soaring world crude prices have pinched Chinese oil refiners, which have suffered losses because the state imposes below-cost fuel prices.

Supply shortage has resulted in long waiting lines at service stations in many cities.