China National Petroleum Corporation (CNPC) is considering importing a further 300,000 tons of diesel oil following the Sinopec Group's promise to guarantee domestic supply during the upcoming Spring Festival.
The imported diesel is scheduled to arrive next month, sources with Shanghai Securities News said. This meant a total of 800,000 tons of diesel would be provided to the domestic market next month, as Sinopec Group announced previously it would import 500,000 tons during the same period.
It would help provide for a large demand increase the market usually experienced in the first quarter, said Li Yu, Oilboss.cn Inc senior editor.
"Oil demand will surge in the transport sector because many Chinese travel home during the traditional Spring Festival, which falls on February 7," he said. "Construction of infrastructure and buildings will begin shortly after the festival."