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China rations diesel as drivers wait for days to refuel

China is currently in the midst of a massive power crunch, as coal and natural gas shortages have closed factories and left homes without power
Last Updated : 29 October 2021, 03:25 IST
Last Updated : 29 October 2021, 03:25 IST

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

Some truck drivers are having to wait for days to refuel, according to posts on social media site Weibo, the report said.

China is currently in the midst of a massive power crunch, as 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 report added.

"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, the report said.

"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 litres each - about 10 per cent of their capacity, a truck dealer from Shijiazhuang city in Hebei province told Chinese business news service Caixin.

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

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) to fill up their tanks, the report added.

"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.

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Published 29 October 2021, 03:12 IST

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