Life of Guangzhou - Refined Oil Supply Adequate, No Line-up in GZ Yet

With continuous high oil prices in the international market, there is a concern over refined oil supplies in Guangzhou and even Guangdong province. Fortunately, conditions are much better than people’s expectation. At present, there is totally 641,300 tons of refined oil in stock in the whole province which can supply the market for 11 days, far longer than the warning line of 6 days. An officer of Guangzhou Economic and Trade Committee said: "Guangzhou is pretty safe from the tight oil supplies of 2005."

In line with the rising trend of international oil prices, the gasoline wholesale prices in Guangdong province are also a bit higher. As a result, the oil supplies in some small private gas stations have shortened temporarily. However, both Sinopec and China National Petroleum Corporation (CNPC), the two main oil suppliers, provide sufficient oil to the market.

Currently, among all the 500 gas stations, about 75% are state owned that are run by Sinopec or CNPC. All oil products in these state-owned gas stations are not in any supply limit or rationed among buyers. So far, the supply-demand condition in the refined oil market in Guangdong province has been basically stable.

(By Chan Wenli, Alan Devey)