High oil prices hit Chinese petrol stations

Fuel shortages were reported at petrol stations throughout China Sunday as the cost of oil on the domestic market lagged behind record global prices, prompting refiners to slow deliveries.

Petrol stations were temporarily closed or refusing to sell petrol and diesel in Shanghai, the southern provinces of Guangdong and Fujian and in the central and eastern regions of Zhejiang, Shandong and Henan, state media reports said.


“In recent days the demand and supply situation for oil products has been tight,” the People’s Daily website quoted a PetroChina official from Henan province as saying.

“The main reason is that international oil prices have reached record highs while domestic prices have not followed suit. This has seriously influenced the production activities of refiners.”

With government subsidies keeping fuel prices artificially low, petrol stations are either running out of supplies or are shutting operations hoping for a state-approved rise, he said.

AFP