State media reported that China fined Sinograin, a state-owned stockpiler of cooking oil, and six other firms an aggregate of 11 million yuan (1.54 million dollars) for the use of fuel tanks to transport cooking oils in a scandal which eroded trust in food safety regulations.

The Beijing News, a local newspaper, reported in July that fuel tanks had been used for transporting soybean oil, cooking oils and syrups without cleaning them in between. This sparked fears of food contamination.

State media Xinhua reported that an official investigation conducted in Hebei, Tianjin and Inner Mongolia provinces found that the use of dirty tankers is "extremely serious". The investigation was carried out by the State Council Food Safety Office.

The council said that the use of dirty tankers violated "basic common sense, and crossed moral and legal redlines".

Sinograin Oil Co. Ltd. was fined 2.86 million Yuan ($401.555.68). Six other edible oil and logistics firms were fined 8.18 million. The authorities also filed criminal charges against 2 drivers.

China has been unable to repair the damage caused by past food scandals despite Beijing's efforts to tighten up food safety controls over the last decade.

The latest scandal caused a stir and led shoppers to choose foreign brands of cooking oil despite their higher prices.

(source: Reuters)