Nov. 15 (Bloomberg) -- PetroChina Co., the nation's biggest oil producer, plans to increase crude processing volume by 12 percent this year to help ease domestic fuel shortages.

PetroChina plans to process 120 million metric tons (about 2.4 million barrels a day) of oil this year, Vice President Liu Hongbin told reporters after a conference in Beijing today. The company processed 2.15 million barrels a day of oil last year. The latest projection is also higher than a March forecast for refining volume to reach 2.25 million barrels a day in 2007.

China, the world's largest energy user after the U.S., has had fuel shortages since the August summer consumption peak. The Chinese government unexpectedly increased fuel prices by as much as 10 percent effective Nov. 1 in what the National Development and Reform Commission called an ``urgent step'' to boost market supplies.

China controls fuel prices to limit their impact on inflation. Domestic refineries have been losing money from fuel sales since July after crude oil costs soared. Benchmark crude prices reached a record $98.62 a barrel last week.

China National Petroleum Corp. and China Petrochemical Corp., the nation's two biggest refiners, will delay maintenance of oil-processing plants to boost fuel output and ease shortages, the commission, China's top economic planner, said Nov. 6.

The companies will increase diesel output and ``strictly'' limit fuel exports to ensure domestic supply, the commission said at the time.

China National is the parent of Hong Kong-listed PetroChina and China Petrochemical, as Sinopec Group is known, is the parent of China Petroleum & Chemical Corp.

To contact the reporter on this story: Wang Ying in Beijing at wang30@bloomberg.net; Ying Lou in Hong Kong at ylou1@bloomberg.net

Last Updated: November 14, 2007 22:12 EST