China rations diesel amid fuel shortages allowing only 10% of capacity or less

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Petrol stations in many parts of China have begun rationing diesel amid rising costs and falling supplies. 

Some truck drivers are having to wait entire days to refuel, according to posts on social media site Weibo.

China is currently in the midst of a massive power crunch, like coal and natural gas shortages have closed factories and left homes without power.

And this latest issue is only likely to contribute to an ongoing global supply chain crisis, say analysts.

“The current diesel shortages seem to be affecting long-distance transportation businesses which could include goods meant for markets outside of China,” said Mattie Bekink, China Director at the Economist Intelligence Unit.

“Depending on the duration and intensity of this crunch, we could well see this contribute to the global supply chain challenges.”

The global supply chain crisis has been largely driven by the Covid-19 pandemic, with demand surging as economies re-open.

In China, trucks are only being allowed to fill up 100 liters each – about 10% of their capacity, a truck dealer from Shijiazhuang city in Hebei province said.

In other parts of the country, reports suggest rations are even tighter with drivers only allowed to buy up to 25 liters.

Meanwhile, in the city of Fuyang, about a seven-hour drive south of the key transportation hub of Shijiazhuang, Caixin reports petrol stations are limiting purchases or charging drivers surcharges of up to 300 yuan ($47, £34) to fill up their tanks.

“After going to a few [petrol] stations, there is no more diesel, and prices will continue to rise, and large trucks running logistics will not be able to refuel,” one Weibo user wrote.

Another also bemoaned the impact on inflation and deliveries.

“Do you get the feeling that food has become more expensive and the express delivery is slower? It would be better to buy less on 11/11,” referring to Alibaba’s Single’s Day, typically one of the biggest days of the year in China’s shopping calendar.

 

SOURCE: NEWS AGENCIES

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