High prices to fuel penalties
By Fu Chenghao |
November 27, 2010, Saturday
|
Print Edition
Print Edition
CHINA has ordered local price authorities to penalize fuel retailers that sell overpriced diesel as the government steps up its crackdown on price violations to ensure supply.
The National Development and Reform Commission, the main economic planner, yesterday published the names of 10 pump stations across China which sold diesel at prices higher than official ceilings during a recent check. The NDRC said that Yueyuan station in Xichang, Sichuan Province, sold diesel at 9 yuan (US$1.35) a liter, 37 percent over the local maximum of 6.55 yuan.
The NDRC asked local price regulators to seize the extra revenue these stations obtained from illicit selling and to punish them accordingly.
On Tuesday, the NDRC said it would punish six companies, including affiliates of the nation's two main state oil companies, for selling diesel above the state-set prices. This is part of the government's efforts to solve the shortage in diesel supply.
The shortfall occurred as the peak demand season approaches and after the government rationed power supply to some factories to meet national energy efficiency targets.
The restriction prompted some factories to use their diesel generators.
Weak refining margins and expectations of fuel price hikes have led to hoarding, allowing speculators to profit by selling fuel above the limit set.
In a separate statement yesterday, the NDRC said state-owned companies should be socially responsibilities and assist the government to ensure adequate supply of oil, coal and grain so that price rises can be checked as it tries to reassure public unease over inflation which surged to a 25-month high of 4.4 percent in October.
The National Development and Reform Commission, the main economic planner, yesterday published the names of 10 pump stations across China which sold diesel at prices higher than official ceilings during a recent check. The NDRC said that Yueyuan station in Xichang, Sichuan Province, sold diesel at 9 yuan (US$1.35) a liter, 37 percent over the local maximum of 6.55 yuan.
The NDRC asked local price regulators to seize the extra revenue these stations obtained from illicit selling and to punish them accordingly.
On Tuesday, the NDRC said it would punish six companies, including affiliates of the nation's two main state oil companies, for selling diesel above the state-set prices. This is part of the government's efforts to solve the shortage in diesel supply.
The shortfall occurred as the peak demand season approaches and after the government rationed power supply to some factories to meet national energy efficiency targets.
The restriction prompted some factories to use their diesel generators.
Weak refining margins and expectations of fuel price hikes have led to hoarding, allowing speculators to profit by selling fuel above the limit set.
In a separate statement yesterday, the NDRC said state-owned companies should be socially responsibilities and assist the government to ensure adequate supply of oil, coal and grain so that price rises can be checked as it tries to reassure public unease over inflation which surged to a 25-month high of 4.4 percent in October.
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