A SHORTAGE of diesel, which has resulted in long queues at a number of gas stations in Shenzhen the past few days, is expected to continue for "a few more days," according to officials with one of China's two oil giants.

Yesterday's Daily Sunshine said that many gas stations in the city had stopped selling diesel as there was no profit to be made. International crude oil prices soared more than 8 percent last week, while prices of domestic oil products, fixed by the government, remain unchanged.

Long lines at filling stations are frequently seen around the city, causing traffic jams in some areas during rush hour. A manager of a gas station on Lianhua Road was quoted by the Daily as saying that his filling station ran out of diesel a week ago but he could not find any stock for the whole week.

Xu Tao, a director of Sinopec's Guangdong branch, attributed the diesel shortage to high demand from industry and agriculture, the ever-rising international price of crude, and the fact that the wholesale price is now higher than the retail price.The wholesale price of diesel oil is currently 6,500 yuan per ton, while the retail price is 5,983 yuan per ton.

Besides, domestic oil refiners are losing thousands of yuan for each ton of crude oil refined, said an official with the Shenzhen branch of China Petroleum & Chemical Corp., known as Sinopec, China's No. 2 oil company in terms of size.

However, the official who did not give his name said the shortage would not last long, as the company was looking to increase diesel supply. But he did not elaborate.

He said oil retailers profited little from selling No. 93 gasoline because of the unreasonably low prices fixed by the government. "Gas No. 97 is the only oil products in domestic market that is profitable."

Gasoline supplies in the city remain unaffected.

(SD News)