Major China cities hit by diesel fuel rationing

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BEIJING – Petrol stations in at least three major Chinese coastal cities were rationing diesel on Thursday, drivers said, causing long queues of trucks and reviving the spectre of bigger fuel shortages that could stir discontent.

The shortages have worsened since last week, when stations in at least five provinces ran out of stock before the day ended, but have not yet reached the fever pitch of last October.

China has been plagued by sporadic shortages and rationing for several years, usually blamed on its big state oil companies holding back supplies to avoid losses by selling gasoline and diesel at artificially low domestic market prices in the face of rapidly escallating imported crude costs.

However the latest bout of shortages come at a time of record high diesel and gasoline imports and the commissioning of a new refinery, suggesting that oil firms may not be willfully withholding supplies from the market.

The shortages began a fortnight ago and by Thursday reached major cities like Shanghai, Beijing, Guangzhou and Ningbo.

Reuters