We has rigorously observed the policies on price, quantity and quality issued by central and local government authorities in order to create a fair and quality market environment for consumers, while taking measures to ensure market supply.

— Refining and chemical enterprises maximized production capacity, resulting in crude oil refining experiencing a 4.9% year-on-year growth; product structure and operation ofequipments have been optimized, and efforts made to improve the yield of diesel oil.

— Based on seasonal demand, We took a series of measures such as putting aside a summer stock of low-freezing-point diesel oil for winter utilization and inventory adjustment; in the fourth quarter, through reserve development and inventory reduction, 500,000 tons of delivery guaranteed supply at special periods for agricultural production, such as production in winter, transportation in spring as well as farming in spring and summer.

— We arranged imports to increase supply for the domestic market. The whole-year  import of diesel oil and gasoline totaled 820,000 tons, bridging the gap in domestic energy supply.

— We increased efforts to procure resources from local refineries in order to increase market supply. The whole-year procurement of oil products totaled 2.90 million tons, alleviating pressure for market supply.

— PetroChina strengthened distribution and transportation logistics. Based on resources and transportation capacity, PetroChina optimized operation plans and strengthened cooperation with railways, ports and pipeline transportation departments, so as to ensure that west-east and north-south oil transportation met market demand.

Moreover, we set up a daily monitoring system and daily meetings to strengthen price supervision and also prepared emergency response plans, to better fulfill our responsibility of market supply. By the end of 2007, PetroChina-operated service stations reached 18,648, which further enhanced our capability to ensure steady supply.

    From October to December 2007, China underwent oil product shortages in the domestic market. Consequently, PetroChina took effective measures to ensure the steady supply of oil products, which was highly praised by governments at all levels as well as various sectors of the society. Many local governments, including Beijing, Sichuan, Xinjiang Uyghur Autonomous Region and Gansu, expressed their appreciation for our contribution to resource supply and support to local economic development.