Sinopec suspends diesel exports due to shortage in local market

China Petroleum and Chemical Corp. (Sinopec), China’s largest oil refiner, said it has suspended company exports of diesel fuel, to relieve shortages in the domestic market. Sinopec also said it is seeking to import 200,000 tons of diesel fuel. Insiders said China’s output of diesel fuel soared in the first nine months of the year, prompting Sinopec, as well as PetroChina, to boost exports of the product. Media reported that diesel fuel supply ran low after thousands of factories bought diesel generators to cope with power cuts imposed by authorities to meet energy-saving goals, boosting already strong fuel demand. In southern China, more than 2,000 privately owned filling stations have run out of diesel fuel, Xinhua reported, citing the China Chamber of Commerce for the Petroleum Industry. (November 20, 2010)