Economy

Sinopec to hike oil processing to ease shortages

(Xinhua)
Updated: 2010-11-09 22:01

BEIJING - China's major oil refiner, Sinopec, has taken measures, including boosting crude oil processing and importing diesel, to alleviate the severe diesel shortage currently plaguing some Chinese cities.

Daily processing of crude oil will increase to 4.27 million barrels per day in November, up 9.9 percent from last November or one percent increase from October, the company said in a statement.

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Some of its oil refineries have also cut output for processing of petrol and industrial chemicals to make room for increased diesel production.

Further, the company said it would import 200,000 tons of diesel to supplement the drying diesel storage in some regions of China.

Several Chinese cities are experiencing an unprecedented diesel shortage, with many gas stations closing and trucks lining up for diesel fuel at the others.

Experts said the diesel shortage occurred at the end of the year, a time when demands for diesel usually run high.

Additionally, the blackout policy, adopted by some local governments to meet emission reduction commitments, is also blamed for aggravating the problem as factories hoarded diesel supplies to generate electricity to continue operations.