The latest round of government price control measures has pundits making predictions, both optimistic and wary. One industry insider is suggesting that instead of holding prices steady, these measures may actually drive prices up, given limited marketing supplies.
"The tightening measures have helped ease price hikes on cooking oil. However, if current measures continue, it is likely a massive shortage of cooking oil will take place, resulting in surging prices," Gao Jianfeng, manager of a cooking oil distributor in Beijing, told the Global Times Sunday.
A lack of raw materials, such as soybeans, has already forced some cooking oil producers to halt production in recent days, Gao said, adding that the measures would likely cause more such suspensions, as they squeeze oil producers' profit margins. He added that should the government better handle price control measures in the future, any cooking oil price increases would be less severe.
Sanhe Hopeful Grain &Oil Group Co, a Beijing-based cooking oil producer, halted manufacturing, according to Gao. The company is now using up its remaining stock, which has little to do with price control policies, said an employee with the manufacturer, who declined to be named.
Rising cooking oil prices helped push the consumer price index (CPI), a major gauge of inflation, upwards in November.
The consumer price index saw its biggest hike in 28 months in November, going up by 5.1 percent, the National Bureau of Statistics (NBS) announced Saturday. Food prices went up 11.7 percent in November, acting as the driving force behind the surging consumer price index, with cooking oil rising by 14.4 percent.
Inflation fears rattled the government. One day prior to the release of inflation figures, the People's Bank of China hiked the reserve requirement ratio for the sixth time this year, to further soak up liquidity on the market.
At the same time, the State Council announced revised penalties on illegal price manipulation, raising the maximum fine for price gouging to 5 million yuan ($751,201.91) from its former 1 million yuan ($150,240.38) plateau.
Officials expressed little concern over potential problems, however.
When releasing the figures, NBS spokesman Sheng Laiyun said that this growth in inflation was largely due to seasonal changes.
He added that if related price control measures could be effectively implemented, price levels would remain stable.
"The tightening measures have helped ease price hikes on cooking oil. However, if current measures continue, it is likely a massive shortage of cooking oil will take place, resulting in surging prices," Gao Jianfeng, manager of a cooking oil distributor in Beijing, told the Global Times Sunday.
A lack of raw materials, such as soybeans, has already forced some cooking oil producers to halt production in recent days, Gao said, adding that the measures would likely cause more such suspensions, as they squeeze oil producers' profit margins. He added that should the government better handle price control measures in the future, any cooking oil price increases would be less severe.
Sanhe Hopeful Grain &Oil Group Co, a Beijing-based cooking oil producer, halted manufacturing, according to Gao. The company is now using up its remaining stock, which has little to do with price control policies, said an employee with the manufacturer, who declined to be named.
Rising cooking oil prices helped push the consumer price index (CPI), a major gauge of inflation, upwards in November.
The consumer price index saw its biggest hike in 28 months in November, going up by 5.1 percent, the National Bureau of Statistics (NBS) announced Saturday. Food prices went up 11.7 percent in November, acting as the driving force behind the surging consumer price index, with cooking oil rising by 14.4 percent.
Inflation fears rattled the government. One day prior to the release of inflation figures, the People's Bank of China hiked the reserve requirement ratio for the sixth time this year, to further soak up liquidity on the market.
At the same time, the State Council announced revised penalties on illegal price manipulation, raising the maximum fine for price gouging to 5 million yuan ($751,201.91) from its former 1 million yuan ($150,240.38) plateau.
Officials expressed little concern over potential problems, however.
When releasing the figures, NBS spokesman Sheng Laiyun said that this growth in inflation was largely due to seasonal changes.
He added that if related price control measures could be effectively implemented, price levels would remain stable.
