China is in the middle of what the Xinhua newsagency calls “an unprecedented diesel shortage” and in markets where the law of supply and demand rules that can only mean one thing … the cost of diesel is about to rise.
The shortage of diesel fuel in China is apparently so bad that many service stations are ignoring the the price cap set by the government of $A1.02 per litre and charging anything up to $A1.40 a litre.
While those prices don’t look so bad from an Australian motorist’s perspective they certainly indicate just how bad the shortage is and as more diesel is directed to the Chinese market you can expect prices here to go up.
Is the Price of Diesel About to Rise?