Signs of a diesel crisis appear in China

The coal energy crisis in China is turning into a diesel one, and the country's authorities are trying to curb the situation, writes Bloomberg.

Chinese refineries are increasing refining with a focus on diesel fuel and limiting its exports, the agency said. The country has seen increased household demand for diesel generators to cope with electricity supply constraints, and this is superimposed by a peak in agricultural demand and online shopping.

Diesel inventories in China are at their lowest level in at least a year, according to OilChem.net. Sources on the ground report restrictions on the supply of fuel at individual gas stations - 100 liters per truck.

Separately, on Friday, October 22, Xinhua reported that the State Committee for Development and Reform of the People's Republic of China decided to raise retail prices for gasoline and diesel fuel by 300 and 290 yuan (slightly more than 3 thousand rubles) per ton from October 23 "due to the recent rising world oil prices. The report states that the three state-owned oil companies are instructed to maintain the volume of production of petroleum products and ensure uninterrupted supplies.

In addition, it became known about "atypical" purchases of diesel fuel by China: CNOOC ordered 50,000 tons for delivery in early November. Since the beginning of September, diesel fuel in the south of the country has risen in price by 60%, up to 8,000 yuan per ton.

“The Chinese authorities cannot allow a diesel crisis in the face of an energy crisis and sky-high prices for liquid fuels,” Sen Yik Tee, a senior analyst at Beijing-based SIA Energy, told Bloomberg. “The huge gap will have to be closed by state-owned refineries.”

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We talked about the course of the coal energy crisis in China and its origins here .