Sinopec Corp said it expects to process 42.5 million tons of crude oil in the final quarter this year, up 7.5 percent from the third quarter, as China's largest refined oil supplier acts to counter a fuel shortage.
The amount represents an increment of 500,000 tons over its original fourth-quarter plan, according to China Petrochemical News, a newspaper of Sinopec's state-owned parent, China Petrochemical Corp.
This also surpasses the 42.38 million tons estimation made early this month.
China has suffered a diesel shortage in October and November due to soaring crude prices and capped domestic pump prices for refined oil products. Domestic refineries had cut production to stem losses from the yawning price gap.
The National Development and Reform Commission has since asked state refineries to increase processing volumes and raised domestic fuel prices by as much as 10 percent at the start of November.
Sinopec said yesterday the supply condition was basically back to normal, with increasing oil processing and imports.
The top Asian refiner said it processed 980,000 tons more crude last month from a year earlier, a record on a daily basis.
Sinopec also said it imported 287,000 tons of diesel in November, and is expected to import 423,000 tons this month.
Still, the China Petroleum and Chemical Industry Association warned last week that a supply shortage could recur in 2008 if the domestic fuel pricing mechanism is not improved. The government sets petrol and diesel prices in China to check inflation.
(Shanghai Daily December 26, 2007)
