Oil shortage in Wuhan

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Oil shortage in Wuhan
Mar 15, 2008 03:23
KATRINA Points: Join Date: Nov 29, 2004 Status: offline	According to the news, about 58 city buses in Wuhan were suspended due to the lack of diesel oil. It is estimated that about 40000 people had been affected. An official of the subsidiary company of PetrolChina in Hubei Province told the newspaper that the soaring oil price was the main culprit for the oil shortage.

Mar 15, 2008 10:44	#1
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	That's quite an economic impact. Loss of revenue by the bus operators (government?), loss of revenue by the retailers, and loss of wages by the workers. All the more reason that energy should be more dependant on wind, solar and hydrogen. Nice looking busses. The bicyclist came prepared.

Mar 15, 2008 11:09	#2
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	Katrina+++++ Weren't you in New Orleans, Louisiana several years ago?

Mar 16, 2008 04:27

APAULT
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Join Date: Mar 11, 2006
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My guess is that the problem results from a mix of market economy and central directives. With the price of oil it is probably uneconomic for the fuel company to supply the diesel at the fixed price, or there are better prices to be had elsewhere.

If this is the case, the government can allow the price to reach market level, or it can subsidise prices as a benefit to society as a whole. Otherwise, we see buses laid up or the company goes bust.

Mar 17, 2008 22:52

JIMMYB
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Join Date: Feb 7, 2007
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"Loss of revenue by the bus operators (government?), loss of revenue by the retailers, and loss of wages by the workers."

The oil price is surging but the government requires to stablize the price and announces to punish these retailors who raise the price randomly. No wonder these retailers lose their revenue. As another post said, the SINOPEC and CNPC make no profit from oil selling.

"If this is the case, the government can allow the price to reach market level, or it can subsidise prices as a benefit to society as a whole. Otherwise, we see buses laid up or the company goes bust. "

I agree with you that China should make it market mroe free. However, they should intervene in stablize the oil prices at the moment. If they let the oil prices free, I guess that social unrest might be caused. All products prices have increased but people's salary haven't. How can they afford to buy goods? It is reported that the price of the scallion in Beijing has increased by 641.2%. Can you believe it?

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