China's largest refinery, China Petrochemical Corporation, has announced it will increase diesel supplies by 37.5 percent in June, providing 2.5 million metric tons of diesel to China's consumers. To meet this goal, the company doubled the volume of gasoline and diesel imports. Another large refinery, China National Petroleum Corporation, had announced it would increase May output by 6 percent to meet demand. China's gasoline imports hit a record 338,572 tons in May, while diesel imports reached 700,000 tons, triple year-ago levels. The government is boldly taking action in order to avoid the severe shortage of diesel that occurred in the summer of 2007. Much of the demand will go to the agricultural sector, with shipments sharply increasing to the provinces of Hebei, Shandong and Shanxi, the larger agriculture producers in the North China Plain.
To help offset the surge in international prices, China has announced it will allow its oil companies to increase domestic gasoline and diesel prices by 17 to 18 percent this month.
To help offset the surge in international prices, China has announced it will allow its oil companies to increase domestic gasoline and diesel prices by 17 to 18 percent this month.
