Chinese oil companies ask for supply guarantee

China’s government is considering a request from private oil companies for a guaranteed supply of between 10 million and 20 million tons of fuel annually, to alleviate shortages.

As much as 80 per cent of private fuel storage facilities are now empty, said Zhao Youshan, head of the Petroleum Distribution Committee of China’s General Chamber of Commerce.

The National Development and Reform Commission is studying the proposal, which would ensure that between 5 per cent and 10 per cent of the nation’s total fuel supply went to private companies, Mr. Zhao said.

GlobeandMail