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    China may tweak oil price-setting formula
    (Reuters)
    Updated: 2005-08-21 08:59

    Although the government owns majority stakes in Sinopec and PetroChina, both companies are listed overseas.

    With foreign investors scanning the balance sheets of their listed arms, analysts say the refiners are increasingly reluctant to subsidise Beijing's policy and have sought to put pressure on the government by trimming supplies to loss-making home markets.

    Closed service stations and fuel rationing have plagued the manufacturing heartland of Guangdong over the past few weeks.

    But a senior official was quoted on Friday as saying the petrol shortages would ease soon as supplies improved.

    "The current domestic production, consumption, stockpile and trade of oil products are basically normal and supply can be secured. It is not possible that China will have an oil crunch," Xinhua quoted Li Yang, an official with the National Development and Reform Commission, as saying.

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