"Oil shortage" spreads across many provinces and regions across the country
A nationwide "oil shortage" is now emerging, following a prolonged supply disruption in Guangdong, which has since spread to provinces like Heilongjiang, Shandong, Yunnan, Fujian, and Hebei. The situation has raised concerns as fuel supplies have become increasingly tight across multiple regions.
According to reports from Fuzhou Customs, Fujian imported 21.55 million tons of refined oil in the first half of this year—an alarming 65.63% decrease compared to the same period last year. This decline has led to a severe shortage in the local refined oil market, where demand continues to rise. As a result, fuel availability has dropped significantly, with some independent gas stations experiencing complete shortages.
The surge in vehicle numbers—over 110,000 new cars added in Fujian this year—has further strained the market. Additionally, the end of the fishing ban on July 31 has boosted diesel demand, especially in coastal areas. This sudden spike in consumption has led to rapid depletion of inventories, creating a critical supply gap. Some gas stations are now unable to provide fuel at all.
Authorities in Fujian’s Economic and Trade Commission have confirmed that Sinopec and PetroChina will allocate additional oil resources to the province this month to stabilize the market. Meanwhile, in Heilongjiang, fuel prices vary widely, and many private stations that once relied on PetroChina for supplies are now running out of stock. Long lines at gas stations have become common, especially given the region's remote location and limited access to oil distribution. Adding to the problem, Russia is expected to cut its oil exports to China by 30% this year, worsening the situation for petrochemical companies in the area.
In Qingdao, Shandong, many gas stations are restricting fuel supply. It's estimated that up to 50% of stations are unable to refuel customers, with some only serving regular clients or offering limited grades like No. 97 gasoline. In Yunnan, the situation is no better—No. 90 gasoline has been unavailable for two weeks, and No. 93 has been out of stock for over a month at some Sinopec stations near Kunming.
Although Hebei hasn't faced a complete product oil shortage, rising fuel prices have caused consumer anxiety. While major cities like Shijiazhuang still have sufficient supplies, smaller gas stations occasionally face shortages. Petrochemical companies are working to prevent fuel stalls and maintain stability in the market.
Overall, the oil shortage highlights growing challenges in supply chain management, increasing demand, and external factors such as reduced Russian oil exports. With the situation evolving rapidly, authorities and companies are under pressure to ensure continued fuel availability across the country.
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