China faces supply gap in refined products

Insiders at Chinas Guangdong Petroleum Industry Association, an organization of oil producers, sellers, and processing companies, estimate that the shortage in refined oil supply will last three months, or even four months. The government has asked oil majors PetroChina and Sinopec to prioritize diesel production and speed up construction of new refining facilities to bring them on stream sooner in order to combat spreading shortages. An official with Sinopec said that the firm is operating at full capacity despite losing about 3,000 yuan (US$434.63) for each ton of gasoline and diesel that it produces. (May 26, 2008)