China Warns Against Hoarding As Fuel Shortage Spreads

china gasoline gas oil CNPC

SHANGHAI (AP) — China’s chronic fuel shortages are worsening with the onset of winter, especially in inland areas, as output by refiners put off by price cuts lags behind surging demand.

The government says shortages are worst in eastern and central China, where some filling stations have run out of diesel fuel.

Soaring demand due to the end-of-year rush of construction projects and factory deliveries has been worsened by hoarding.

The problems are putting pressure on state-owned refiners to raise output at a time when rising costs for foreign crude oil are once again forcing them to produce at a loss.