Big oil sellers anticipate price hike
11 July 2007
Oil wholesalers, gas stations and freight companies have started stock up oil with the price of crude oil surpassing US$70 per barrel and domestic refiners suffering losses, Jinghua Times reported (in Chinese). These so-called big users are expecting to reap considerable profits should the National Development and Reform Commission (NDRC) adjust the domestic retail price of oil, or at least subsidize the wholesale cost. The government will consider adjusting the retail price of oil products in order to relieve pressure on upstream procurers, now that oil prices have entered a sensitive period, energy specialist Li Fachang told the newspaper.