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Fuel Shortage Hits Pearl River Delta
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Taxi drivers feel the pressure, as fuel shortages hit China's Pearl River Delta, one of the country's economic engines.

The Guangzhou-based newspaper Information Times reported Wednesday that Guangzhou and its neighboring cities in the Pearl River Delta will face increasing pressure of fuel shortage in the coming months.

Reporters visited gas stations throughout the city and the neighboring cities including Dongguan, Panyu, Shunde.

Staff from most of the gas stations in Guangzhou claimed shortage of 90-octane grade gasoline. Even sales of ample 93-octane grade gasoline are limited by quotas.

Two of China's leading state-owned fuel suppliers, Sinopec and PetroChina, noted that a shortage of 50,000 ton of fuel oils awaits the city in August.

While visiting gas stations in Guangzhou, reporters learned from drivers that they could buy only 50 Yuan worth of 90-octane gasoline each time at some stations.

In the satellite city of Panyu, fuel shortage have worsened, with only a few stations supplying the 90-octane gasoline.

Another satellite city of Dongguan has also suffered nearly 10,000 tons each month, lasting for several months.

The city of Shunde seems easier facing the fuel shortage, as reporters learned that the gasoline 90-octane and 93-octane grades are available at most gas stations during the time of the visit.

One staff from a Sinopec gas station said it was due to the typhoon Haitang that the oil tankers could not dock in due time.

Another reason is that prices of domestic fuels are lower than international oil and this in return curbs the production output. Some gas stations stopped to supply the 90-grade gasoline as owners claim they're losing money on it.

One sales manager from Sinopec said that Guangzhou needs 80,000 tons of fuel oil each month with a shortage of 30,000 tons. He added that the parent company has taken urgent steps to make supply ready for the market in time. PetrolChina, another heavyweight supplier in the city, shall fill another 20,000 tons of shortage of fuels.

To counteract with the surging oil price and fuel shortage, government officials proposed that a fuel fee of one Yuan (or about 13 cents) should be levied from cab passengers. Another measure would be to decrease cab drivers' service fees to the cab company.

Experts also suggested that drivers should take concrete steps to lower their fuel consumption and increase fuel efficiency.

(CRI August 4, 2005)

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