China has been facing an energy crisis that started gaining global media attention in October when reports of coal shortage and power blackouts in the country emerged. And now, rationing of diesel is being reported by users on Chinese social media. This ongoing energy crisis is expected to disrupt the global supply chain and result in a rise in commodity prices.
According to posts on the Chinese social media platform, Weibo, truck drivers are having to wait for days to get their quota of diesel. Chinese media reports, citing a truck dealer from Shijiazhuang city in Hebei province, suggest that truck drivers are only getting 100 litres of diesel each, about 10% of their vehicle’s capacity. In other parts of the country, reports suggest rations are even tighter with drivers only allowed to buy up to 25 litres.
The energy crunch in China and in many other parts of the world, including India, are being attributed to a rebound in economic activities after economies facing severe downfall due to the Covid-19 pandemic. According to experts, fuel supply has failed to keep pace with the surge in demand, and as a result, fossil fuel prices have reached record levels.