Since the international oil price broke 90 USD per barrel, refined oil supply in China has been short.

Last week, diesel oil supply had been tight in Guangzhou especially in gas stations along the highways, connecting outskirts of the city and urban areas. All types of refined oil are in short supply except in a few big gas stations inside the city where there is still a small amount of oil in supply.

A plate written  "No diesel oil" is erected in a gas station. (Guangzhou Daily photo)

Diesel oil supply at the gas stations in Jiangwan and Baogan is tight; the gas station at Xingang Xi Lu limits the purchased amount of diesel oil amount per vehicle; and the gas stations at Haiyinqiao Nan and Guangzhou Dadao Nan have stopped diesel oil supply.

At the same time, the oil supply in neighboring cities such as Dongguan, Zhongshan and Qingyuan is also under stress. On Tuesday, 30 October 2007, police were sent out to a gas station in Dongguan to maintain order because too many vehicles had lined up for oil.

The more diesel oil sold, the more losses gas stations suffer

According to the latest statistics, gas stations still have to suffer a loss of RMB1200 yuan for each ton of diesel oil sold because of the price limit released by the Development and Reform Commission. However, the wholesale price has surged by 13% which is about RMB 7000 yuan per ton. Due to this increase in price some gas stations are not enthusiastic about diesel oil. Some gas stations have even temporarily closed for "renovations."

Ninety Thousand Tons of Diesel Oil Arrived in Guangzhou

According to the Economic & Trade Commission of Guangdong Province, the refined oil stock in Guangdong province is still enough for 10 days; which is still far away from the warning line. The two major oil companies have both increased their supply. On the other hand, 90,000 tons of imported diesel oil has arrived in Guangzhou.

An insider expects the condition of the shortage of diesel oil to improve within 15 days.