Oil supply on domestic market stabilizing

According to China's National Development and Reform Commission (NDRC), the country's oil supply is returning to normal following the implementation of government measures aimed at boosting oil production.

For the past month, many gas stations have experienced fuel shortages, due to the reluctance of refineries to maintain a steady supply on the price-regulated domestic market.

China's major oil producers PetroChina and Sinopec have been running at full capacity since November 1, when the government agreed to raise the prices of some oil products by about 10 percent. The companies have also been ordered to expand the supply of crude to small refineries.

The oil giants have agreed to provide sufficient oil to gas stations located in major cities including Beijing, Shanghai, Tianjin and Guangdong, and along main trans-provincial expressways.

Local governments have been ordered to guarantee adequate oil supply to sectors that are crucial to ensuring people's livelihood, such as public transportation, Xinhua writes. Market supervision has also been enhanced to crack down on gasoline hoarding retailers who raise prices without authorization.

The approaching winter is feared to aggravate the situation as demand for fuel increases.

Earlier this month, the government pledged more measures to boost crude oil production and refining capacity.