SINOPEC, China's biggest oil refiner, is planning to import 60,000 tons of gasoline in September to help meet domestic demand, said a company official yesterday.
Arrangements for the imports have been settled, including the time and place of delivery, the Sinopec official in charge of sales said, adding that the imported gasoline would arrive at the end of this month.
The demand for gasoline has surged due to increasing fuel consumption propelled by the end of an annual fishing ban, intensified farming in the autumn and persistent hot weather.
Meanwhile, the refiner wanted to keep some gasoline in store ahead of the National Day holiday to help ease the shortage in the domestic market, he said.
The market price of gasoline in China was 6,300 yuan (US$829) per ton while the CIF (cost, insurance and freight) of imported gasoline was about 6,800 yuan per ton, said the official.
This means Sinopec would be almost 30 million yuan in the red by selling the imported fuel.
In China, oil prices are controlled by the government, which has subsidized oil companies since 2005. Last year Sinopec received five billion yuan from the government. Since July, oil product supplies have fallen short of demand.