Energy

China punishes firms for diesel price rigging

(Agencies)
Updated: 2010-11-24 16:45

BEIJING - China on Tuesday ordered authorities to seize revenues from some local oil refineries and wholesale fuel dealers for artificially propping up diesel prices, part of an effort to control prices and fight a diesel supply crunch.

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The powerful National Development & Reform Commission (NDRC) said on its website (www.ndrc.gov.cn) that oil dealers including some affiliated to state oil firms were selling diesel above the State-set ceilings, causing disarray in the market.

The agency ordered local authorities to seize the illicit revenues from the above-ceiling sales and also fine them with up to 5 times their income.

A counter-seasonal diesel shortage started in October, some oil dealers and local refineries took advantage of the supply squeeze and marked up diesel prices by up to 10 percent above the government-set retail ceilings, industry officials have said.