China Experiences New Fuel Shortages
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Friday, 06 June 2008 |
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China's major cities are experiencing fuel shortages again. Service stations in Shanghai, Beijing and Guangzhou have
rationed stocks or shortened operating hours because of supply
shortages, particularly of diesel.
Oil companies have cut supply in the local market because prices are
fixed by the government and they are selling at a loss. The gap between
international and Chinese prices for petrol is about 20%, while the
figure is 40% for diesel.
Analysts say the Chinese government
will probably not raise petrol prices, despite the fact that Taiwan,
Malaysia, Indonesia and India have done so. Instead, the government is
intent on controlling inflation, which hit 8.5% in April. The
government last raised prices in November 2007 , when it hiked the
price of fuel and diesel by 10%. Fuel rationing was also reported
before the price hike.
PetrolWorld 050608
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