Oct. 14 (Bloomberg) -- The China Chamber of Commerce's fuel distribution unit denied a report it may sue PetroChina Co. and China Petroleum & Chemical Corp., the nation's biggest oil companies, for allegedly breaching the anti-monopoly law.

The committee, representing privately owned suppliers, has no intention to sue the companies and the report is ``untrue,'' President Zhao Youshan said by phone in Beijing today. The group will instead submit proposals to the government to help independent suppliers, he said, without elaborating.

The Beijing Times, citing information from a committee meeting, reported yesterday the group claimed that PetroChina and Sinopec, as China Petroleum is known, abused their influence by denying supplies or demanding higher prices. The anti-monopoly law implemented in August states that companies shouldn't use their dominant market share to limit competition.

The group plans to appeal to the government in the ``near future'' to help independent oil companies, Zhao said.

PetroChina and Sinopec will supply crude oil to privately owned refineries and buy their fuel products to help end shortages of diesel and gasoline, the National Development and Reform Commission, China's top government planning agency, said in November.

China has had the worst fuel shortage in at least two years after record crude prices in July drove costs higher and caused refiners to cut back on oil-product output.

Two-thirds of China's private fuel wholesalers and one- third of the independent gas stations were forced to shut because of insufficient oil supplies or losses, Zhao said.

Mao Zefeng, PetroChina's spokesman, and Huang Wensheng at Sinopec didn't immediately return calls made to their mobile phones and offices seeking comments.

To contact the reporter on this story: Wang Ying in Beijing at ywang30@bloomberg.net

Last Updated: October 14, 2008 00:45 EDT