China rations diesel amid fuel shortages

Petrol stations in many parts of China have begun rationing diesel amid rising costs and falling supplies. Some truck drivers are having to wait entire days to refuel, according to posts on social media site Weibo.

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. This latest issue is only likely to contribute to an ongoing global supply chain crisis, say analysts.

"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.

"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% 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.

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, £34) to fill up their tanks.

Another also bemoaned the impact on inflation and deliveries.