Tighter rules on petrol station franchises

　　CHINA announced tighter rules on petrol station franchises Thursday in a bid to regulate distribution and clamp down on peddlars using top company logos to attract customers but selling inferior fuel.

　　The State Economic and Trade Commission (SETC) said only two domestic oil majors -- PetroChina and Sinopec Corp. -- and their sales subsidiaries could offer franchise contracts to independent petrol stations in China.

　　The franchised stations were forbidden to sell oil products, including gasoline and diesel, supplied by companies other than their franchisers, SETC said on its Web site www.setc.gov.cn.

　　PetroChina has around 2,000 franchise petrol stations out of its total of 12,000, and Sinopec has 4,000 franchise stations out of its total of 24,000.

　　Officials of both companies, facing a range of problems with franchisers who were violating agreements, called on the government earlier this year to issue rules to help control their unruly industry.

　　The two majors also terminated franchise contracts with some local petrol stations earlier this year due to irregularities, executives have said. (SD-Agencies)