CNPC bans retail outlets from buying gasoline from private suppliers

The Global Times newspaper reported that China National Petroleum Corp. (CNPC) has prohibited its retail outlets from buying gasoline supplied by private companies. CNPC issued the directive on February 15 because of reported automobile engine malfunctions caused by the use of substandard gasoline in Guiyang province. Several car makers, including Chevrolet and Toyota, have complained that substandard gasoline caused engines in their cars to malfunction. The same problems were reported in the provinces of Hunan and Zhejiang last May, which prompted China Petroleum & Chemical Corp. (Sinopec) to prohibit its retail outlets from purchasing gasoline from private suppliers. But analysts said that the real reason behind the prohibition could be the tighter supply of gasoline which could make it difficult for privately owned retail gasoline stations to obtain gasoline from CNPC. (February 27, 2012)