CCM International Ltd

Diesel-shortage Storm Offering Chances to Biodiesel Producers 8th December 2010

 

Guangzhou, Guangdong -- (SBWIRE) -- 12/22/2010 -- Diesel shortage hitting southern China mainland
Statistics in early November, from China General Chamber of Commerce, shows that over 2,000 private-owned gas stations shut down due to serious shortage of diesel supply in most southern China areas, some better-developed provinces like Guangdong, Jiangsu, Zhejiang are the harder-hit areas. Till mid-November, the shortage situation is still haunting around these areas and tends to spread into other large cities, like Beijing, Shanghai, Chongqing, etc.

The major cause behind this diesel shortage since this October was mostly reported to be the curb of power use. The mandates of power brownout from the local governments made many enterprises resort to diesel engine generator. In fact, the power brownout measure was the consequence of fulfilling the “emission reduction” goals by the end of 2010. In order to achieve these goals on time, many local governments took a shortcut by restricting the power use in their own areas. Therefore, a large amount of diesel has been used by the enterprises in electricity generation to maintain their regular operations since this September.

Meanwhile, there are some other factors contributing to the diesel shortage, such as decreased profits resulting from the growing international oil prices, rising demands from agricultural and industrial fields, suspended capacities for factory repair.

Chances or challenges
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Industrial Biotechnologies China News
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