China begins rationing diesel

After weeks of suffering through electricity shortages, fuel retailers in parts of China are now being forced to ration diesel.

According to a report from Bloomberg, the policy has been brought in to help prevent a similar supply issue gripping the country’s coal and natural gas industries in recent times – which has led to limits on electricity outputs in areas of the country.

It’s understood some fuel stations have begun enforcing stricter limits in recent days, from a daily ration of ¥2500 (AU$520) down to ¥1000 (AU$200), causing truck drivers to turn to social media to express their frustrations.

Others have opted to buy diesel-powered generators to supplement their electricity usage, placing further strain on the fuel supplies.

In early October, a Tesla original equipment manufacturer located in China was forced to suspend production due to the rolling electricity blackouts – with concerns emerging that the decision would eventually impact the supply of Model 3 deliveries to Australia.

While Australia’s fuel is predominantly sourced from Singapore, some diesel is imported directly from South Korea and Japan.

Last month, Sydney recorded the highest average fuel price following ever-increasing wholesale costs on the international crude oil market.