China rationing diesel amid shortages blamed on price controls

[lovuian]

http://www.signonsandiego.com/news/business/20071030-0725-china-dieselrationing.html

BEIJING – Frustrated truck drivers lined up to buy as little as a quarter of a tank of diesel Tuesday because of shortages that one Chinese oil company blamed a shortage of refining capacity due to price controls.

The shortages disrupted trucking in Shanghai and the export-driven provinces of Guangdong, Zhejiang and Fujian in the southeast, but the possible economic impact was unclear.



The Zhengda Transportation Co. in Guangzhou, China's southern business capital, now needs a week to get goods to Beijing instead of the usual three days as drivers hunt for fuel, said a manager who would give only his surname, Liu.

“We have to drive further to find another filling station,” Liu said. “Many goods are delayed in delivery.“'

Oil refiners are losing money because of price controls that block them from passing on soaring crude costs to consumers, and they have refrained from investing in expanding refining capacity.
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