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Oil sector well balanced, possibility of crisis ruled out
By Guo Nei (China Daily)
Updated: 2005-08-22 06:01

China's economic planners ruled out the possibility of an oil crisis in China, days after an oil shortage boxed up the booming Guangdong Province.

Cars line up to buy petrol at a petrol station in Dongguan, south China's Guangdong province, August 17, 2005. [newsphoto]

Li Yang, a senior official at the National Development and Reform Commission, said that China's current production, consumption, stockpiles, imports and exports of oil products are well balanced in general, and sufficient supply has been guaranteed.

During a weekend interview with Xinhua, Li ruled out the possibility of an oil products crisis in the country, saying the recent insufficient supply in some parts of southern China resulted from natural disasters and an international oil price hike.

"The government has taken urgent measures, and the insufficient supply problem in the province will soon be alleviated," Li said.

Local sources in Guangdong Province said that drivers are still queuing to fill up with gasoline. The municipal government of Shenzhen decided to construct 24 new filling stations to give drivers better access to fuel.

Li's commission mainly attributed the oil shortage in Guangdong to an inefficient transportation system, which has been partly broken because of a typhoon and rainstorms.

Because of the shortage, some petrol stations increased the price of fuel, which should be under the control of Li's commission. These wrongdoings intensified feelings among the public that an oil crisis is imminent.

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