BEIJING, June 11  - Chinese experts expect call on the state to uplift the threshold of oil¡¯s windfall tax to help its leading oil producers alleviate deficit.

     Some parts of China encountered oil shortage, after the National Development and Reform Commission (NDRC) recently said that the prices of China¡¯s oil products would not keep pace with the hiking  crude oil prices on the world market.

     Xiong Jie, an analyst from Huatai Securities, said that it was  possible for China to raise the threshold of the windfall tax for oil to ensure the domestic supply of oil products.

     Production costs for crude oil will decrease by 695 yuan/ton, if the windfall tax threshold rises to 80 US dollars/bbl from 40  dollars/bbl.

     The growing crude oil prices on the world market have pushed up China's diesel oil wholesale prices by 16 percent to hit the average 7,700 yuan/ton nationwide.

     China Petroleum and Chemical Corporation (Sinopec) (600028.SH; 0386.HK; SNP.NYSE) and PetroChina Co. Ltd. (PTR.NYSE; 0857.HK; 601857.SH) are expanding production, cutting export and raising import to ensure the supply on the domestic market.

     Although the Chinese government subsidizes the two oil producers by offering duty drawback, they will still receive great pressure if the crude oil prices keep rising on the world market.