In a first, China releases reserve fuel stocks due to diesel shortage

Beijing: – The Chinese government has decided to open up the reserve stocks of Diesel due to indications of the Diesel crisis deepening in China. On Sunday, an announcement was made to this effect. Besides, as per information, this is the first time China has opened reserve stocks of Diesel. The energy crisis followed by fuel shortages has hit the manufacturing sector hard; analysts expressed fears that this will affect the Chinese economy. The decision of the Chinese government becomes significant against this background.

Over the last few days, increasing fuel demand, rising rates and shortage at the same time have resulted in power outages in many of the Chinese provinces. The Chinese industries were trying to tide over the power crisis with the use of generators. But with the help of Diesel generators, a shortage of Diesel was created. The option of rationing was implemented to counter the problem. But the rationing jolted the internal supply chain and the manufacturing sector.

At the same time, certain reports related to the Chinese economy were released. The reports claimed that the Chinese economy had received severe jolts due to the power shortage. The analysts also warned that if the extent of the crisis remains the same, it will adversely affect the economic growth rate. The Chinese government media also carried these reports. The international community also took cognisance of the issue. Against this background, the Chinese rulers have taken this unprecedented decision to open up the reserve stocks of Diesel.

China is the second-highest consumer of fuel on the international level. A few days ago, China had even started exporting Diesel. But now the picture has reversed. It is being said that the current Diesel crisis is a result of the Coronavirus pandemic, floods, increasing prices of other fuels and the changing policies of the Chinese government.