Energy

China takes steps to guarantee domestic oil supply

(Xinhua)
Updated: 2010-11-23 10:34

BEIJING - China's Ministry of Commerce (MOC) on Monday told local bureaus to ensure ample supply of fuel amid rising inflation.

Local commerce authorities should "coordinate oil producers to increase production to meet demand, and reasonably allocate resources to keep prices stable," the MOC said in a statement posted on its website.

The ministry asked local authorities to keep a close watch on the market, and work out contingency plans to cope with increased demand for oil during the winter.

PetroChina, Sinopec and other major oil producers and refiners should increase production, notably of diesel, and keep overall production at a reasonable pace, it said.

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The railway authority should ensure uninterrupted transportation of oil products. The demands of key sectors such as civil aviation and public transportation should be met first.

The ministry also pledged to strengthen the crackdown on hoarding and speculation.

Soaring inflation, which rose by 4.4 percent in October, has become a thorny issue for the Chinese government, which has announced a raft of measures such as increasing the interest rate and temporary price controls, to keep price hikes in check.

The National Development and Reform Commission (NDRC), China's economic planner, said on Monday that the government is capable of keeping prices basically stable helped by an abundant supply of farm produce and the country's fiscal strength.