Chinese National Development and Reform Commission denied the rumors of possible raising the prices of gasoline
The Chinese National Development and Reform Commission (NDRC) denied the rumors of possible raising the prices of gasoline and diesel oil in the near future, despite high recent oil prices on international markets.
NDRC said the supply and demand of oil products are "overall balanced," although some petrol stations were illegally raising prices.
To ensure supply, NDRC has urged oil companies to make greater efforts in processing more oil products and importing more. NDRC also announced that it would immediately initiate a nationwide check on the prices of oil products, stocking up on oil products or raising oil products prices at will.
Last week, Sinopec, China's largest refiner, announced that earnings before interest and tax of its refining division fell 20 per cent year-on-year to 1.48 billion yuan (US$178.9 million) in the third quarter.
Analysts said the refining business could be even worse than the third quarter as oil prices continue to rise.
To help refineries cope with cost rises, oil companies have raised ex-factory prices for oil products, squeezing the profit margin for wholesalers.
China has overtaken Japan to become the second-biggest oil consumer behind the United States