Shanghai Daily news

China is planning regulations that would require the nation's oil companies to build their own refined oil reserves to guard against possible shortages.
Wang Xiaochuan, vice director in charge of commercial reforms at the Ministry of Commerce, said that discussions on the regulations are now under way and the rules will be put in place shortly.
"It's necessary for oil companies to build reserves as refined oil is an important resource for the proper operation of the economy," Wang told the 2005 China Petroleum Forum.
Wang didn't disclose the capacity of the required reserves, but he said it would be within 20 percent of China's current refined oil consumption.
China embarked on a plan last year to build state strategic reserves for crude oil as the country's demand for the fuel continues to grow.
The call to establish refined oil reserves resulted from supply shortages in the Pearl River Delta Region this summer.
The shortfall in south China was due to transport problems caused by Typhoon Matsa, leaving large numbers of car owners waiting outside gas stations.
Business insiders said that the new regulations would ensure a stable supply of refined oil even if emergencies occurred.
"It's risky if the country doesn't have refined oil reserves," said Huang Meilong, an energy analyst at Shenyin & Wanguo Securities Co.
Many developed countries including the United States and the United Kingdom maintain reserves of refined and crude oil.
China, as the world's second-largest oil consumer, used 8.12 million tons of refined oil in its cars and trucks in 2004, 16 percent more than in 2003.