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China Calls for Warning System to Ensure Oil Supplies
Xiao Yu, Bloomberg
China urged local governments to set up an early warning system to ensure sufficient oil supplies at filling stations, which face shortages across the nation, the state-run Xinhua News Agency reported.
The Ministry of Commerce ordered local authorities to monitor oil supplies and work out measures to cope with emergency shortages, Xinhua said yesterday. The report didn’t elaborate on requirements for the warning system.
Demand for crude oil in China has exceeded output as some refineries cut production because of soaring costs and government-capped fuel prices. The nation’s crude oil imports also fell to the lowest in eight months in October as prices climbed to records.
(25 November 2007)
Subsidised fuel weighs on India’s budget
Karishma Vaswani, BBC News, Mumbai
Thakoo Bai Arwar is one of millions of poor Indians who waits for this time of the month, every single month.
It is when she can head to the government ration shop and buy her monthly supply of subsidised kerosene. She and her family depend on the low price of kerosene – a fuel that many low income Indians use for cooking or heating their homes.
Their lives depend on support from the state.
“I have a fixed budget for my monthly expenditures,” she says as she stands in line waiting for her turn to buy the precious fuel.
“I can’t afford to spend more than this amount for kerosene. We use it for everything, so if the price goes up we would really suffer.
“The government needs to look after poor people like us.”
At the ration shop, that sentiment is echoed by many others waiting for their turn to buy kerosene. There is a sense here out on the streets that these subsidies are here to stay for good.
… This is India’s problem. People out on the streets depend on the lower price of essential fuels like kerosene and petrol to survive. But India buys 70% of its oil from international markets – and pays global prices for it.
Selling fuel to its citizens at an artificially low cost is taking its toll on the country’s economy. India sells gasoline, diesel and other consumer fuels at below cost – and is now starting to feel the heat as oil prices head towards $100 a barrel.
(23 November 2007)
