Diesel shortage looms

The State Council, China‘s Cabinet, has ordered local governments to take further measures to combat inflation.

From December 1, road-toll stations are forbidden to collect fees from vehicles transporting fresh agricultural products, including vegetables, fruit, aquatic products, meat, eggs and milk.

Meanwhile, China‘s largest oil refiner, Sinopec said it has suspended diesel exports as the domestic market faces shortages. Sinopec also said it is seeking to import 200,000 tons of diesel. PetroChina Co, China‘s largest oil producer, has also ordered 200,000 tons of diesel.

China.Org.cn reported insiders said China‘s diesel output in the first nine months soared, prompting the two oil giants to expand exports. Now the move is in the opposite direction.