Shanghai is considering a regional law to fight the production and sale of gutter oil, or illegally recycled cooking oil, the city's food safety watchdog said on Friday.

The regulation, which would be the first of its kind to be promulgated by a city, would require an accurate report of the waste oil produced, and it would only be able to be used as a source of energy such as biodiesel.

The move would help tackle the problem at its source, said Yan Zuqiang, director of the Shanghai Municipal Food Safety Commission Office.