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CNPC and Sinopec accused of hoarding oil

By Yang Xi
0 Comment(s)Print E-mail China.org.cn, October 19, 2011
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Private gas station owners across China are accusing the country's two biggest oil refiners, China National Petroleum Corporation (CNPC) and China Petrochemical Corporation (Sinopec), of hoarding oil supplies, Economic Information reported Wednesday.

After China's top economic planner reduced fuel prices, which came into effect on Oct. 9, many gas stations are suffering from a shortage of diesel in various Chinese provinces including Jiangsu, Zhejiang, Shandong and Anhui.

"CNPC and Sinopec have halted oil supply to us since the fuel price cuts, and we have to pay high prices to buy oil from the middlemen," said the owner of a private gas station in Hebei Province.

Oil hoarding by the two refiners is due to narrowed profits as international oil prices have been on the rise recently. At the same time, the anticipation that the Chinese authorities may raise fuel prices has also led the oil giants to reduce their supply, industry insiders said.

Up until Wednesday, Brent crude for December delivery rose 6.23 percent to finish at $110.64 a barrel in London, compared with $104.15 per barrel two weeks ago.

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