Chinese refiners cut back on diesel exports

Chinese refiners are cutting back on exports and postponing maintenance to increase production of diesel fuel. Demand for diesel fuel has surged due in part to Beijing’s attempt to reduce energy consumption so as to get closer to reaching its energy efficiency targets. The government has cut off or cutback energy supply to many inefficient factories, which have in turn turned to diesel generators to make up for the difference. An uptick in freight movements has also increased diesel fuel demand. As a result, diesel fuel has been sucked out of the retail market and as many as 2,000 privately owned gas stations have shut down. (November 10, 2010)