China defends oil price controls: state media

0 Comments | AFP, June, 2008

SHANGHAI (AFP) — The Chinese government defended itself against corporate criticism of oil price controls, saying they were good for the national economy, state media reported on Tuesday.

Ensuring social and economic stability required moving slowly on oil product price reform, the China Securities Journal reported, citing Zhang Guobao, the head of the State Energy Bureau.

His remarks came after rising international crude costs left domestic oil majors like Sinopec saddled with huge refining losses, as they have been forced by the price controls to sell their products at artificially low prices.

The situation has led to mounting calls for the government to loosen the controls to allow oil majors to pass on rising costs to consumers.

However, Zhang...