S. China faces fuel crunch as oil firms battle Beijing

DONGGUAN, China, Sept 28 (Reuters) – “Meiyou, meiyou” — “None here, none here!” the petrol station attendant shouts, waving his arms at a small truck pulling up to the diesel pump to signal that it is dry.

Without stopping, the truck rolls on in search of the fuel elsewhere — another casualty of the low-profile but intense battle between China’s government and its increasingly independent oil firms over who should fund fuel subsidies.


The showdown has caused diesel shortages in parts of China’s booming coastal province of Guangdong for weeks, according to drivers, gas station managers and industry sources, as refiners seek to staunch losses by reducing sales.

The dry pumps are a distant echo of the fuel criss in the summer of 2005 that sparked long lines and a government crackdown on oil firms’ huge exports. Beijing suspended tax incentives and set export quotas to keep more fuel at home.

Reuters