Diesel prices see decrease in early 2008

Domestic diesel prices have fallen in recent weeks due to increases in supply and a seasonal dip in demand, Sinopec told China Business Net (in Chinese). The wholesale price of diesel in markets such as Beijing, Shanghai and Guangdong  province dropped by between US$27 and US$111 per ton from around US$972 at the end of 2007. Diesel in Chengdu slid from US$1,042 to US$816 a ton, a 21% drop. Major oil suppliers like Sinopec and CNPC were required by the government to increase their output in late 2007 to ensure market supply and stabilize fuel prices in the face of historic highs for international crude oil.