Chinese Ministry of Commerce (MOC) on Saturday urged local commerce bureaus to set up and improve early warning system amid efforts to stabilize domestic oil supplies.

Many filling stations across the country are experiencing shortages.

Experts have said that the government should reform the oil pricing mechanism to reflect international levels and allow oil firms to transfer the cost to customers.

The MOC ordered local commerce authorities to closely monitor the oil market and set up and improve early warning system to tackle emergency fuel shortages.

The commerce bureaus should urge local refineries to increase and rationally distribute fuel supplies, the MOC said in a notice.

The MOC called on China National Petroleum Corporation (CNPC) and China Petrochemical Corporation (Sinopec Group), the nation's two largest oil producers, to go all out to ensure the fuel supplies.

The fuel shortages have been eased to some extent after the price hikes early this month, but many regions still face tight diesel supply, according to the notice.

China raised the prices of gasoline, diesel and aviation kerosene by 500 yuan (US$67.6) per ton, almost a 10 percent rise, starting from November 1.

(Xinhua News Agency November 25, 2007)