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By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-22 14:11

The National Development and Reform Commission (NDRC) has required China National Petroleum Corporation (PetroChina) and China Petroleum and Chemical Corporation (Sinopec) to implement national price policies to maintain stable oil prices, the Shanghai Securities News reported today, citing Cao Changqing, director of the NDRC's price department.

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The international crude oil price recorded the year's new high of US$78.4 per barrel last month. PetroChina and Sinopec, the two State-owned oil giants, therefore reduced production in their own oil refineries, causing some local private oil stations to sit idly.

However, the central government has demanded the oil giants operate at full capacity and control exports, in order to feed the domestic market.

"They are capable of guaranteeing the oil supply," Cao said.

Last week, the NDRC promised five million tons of oil annually to fill private pumps, and it also asked PetroChina and Sinopec to treat their own subsidiaries and private oil refineries equally and have no discrimination in supplying oil products.

As a result, the manufacturers' prices of 90-octane and 93-octane gasoline, as well as 0-octane diesel, declined by 20 to 40 yuan per ton in a number of Shandong Province's oil refineries, according to www.oilboss.cn, one of the most authoritative websites on gas station and oil products distribution business in China.