Oil crisis eases, diesel supplies increase

SHANGHAI'S fuel crisis has eased with daily supplies increasing, the city's main provider said yesterday.

Sinopec said drivers should not encounter problems filling their tanks at its 500 city outlets as it had increased diesel supply to 8,000 tons this month, up from 6,000 last month.

The company's Shanghai branch said demand for diesel, used by buses and trucks, was estimated at 6,700 tons a day.

Sinopec has a market share of more than 70 percent in Shanghai's fuel retail market.

Another major player, PetroChina, also said it was increasing supply.

A fuel shortage hit the nation in October with global crude prices rising to record levels combined with a robust winter demand. Some stations were forced to ration diesel.

Other unscrupulous stations were found to have taken advantage of the demand by tampering with pump price gauges.

Since then, the government has ordered Sinopec and PetroChina to run their refineries at full swing, import more and export less, and to utilize privately-owned refineries by providing crude oil to ensure market supply.

Oil firms were also asked to increase diesel output by reducing production of other chemicals.