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By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-01 15:58

China Petroleum and Chemical Corporation (Sinopec) and China National Petroleum Corporation (CNPC) have suspended oil supplies for private gasoline stations in Fuzhou, the capital of Fujian Province, China Business Times reported today.

CNPC used to be the major gasoline supplier for Fuzhou's private oil stations. However, it cut off the supply from the beginning of July, said a boss of a privately owned petroleum station.

Recently, the wholesale price of 90-octane gasoline climbed up by 100 yuan per ton, forcing Fuzhou oil entrepreneurs to seek help from other local oil products wholesalers, including those in Quanzhou and Wenzhou.

Without reliable supply from the two petroleum giants, they have to conserve oil products. "Now we have 2,000 tons of oil products in reserve in Quanzhou," said the chief of another private gasoline station. However, most of their reserves are for orders.

According to a research report on the oil products market in Fujian Province, although the number of oil refineries increased in the first half this year, the production of 90-octane gasoline, the most consumed in the current domestic market, went down.

During the first quarter this year, there was a supply crisis in some local markets in Fujian.

The governmental report predicted that the supply of oil products will remain tight in the second half year.