Showing posts with label diesel shortage. Show all posts
Showing posts with label diesel shortage. Show all posts

Saturday, 23 March 2013

Diesel shortage


I overlooked this one!

South Island diesel shortage



21 March 2013

There's a shortage of diesel in the South Island.

But the Energy Minister is promising it'll be fixed in the next 24 hours.

Simon Bridges says the shortage is not serious.

"It's a number of factors. Some of it's to do with maintenance, ships not getting to the Whangarei refinery when they perhaps should have. But as I say, ultimately while this is something in the South Island it's a short-term issue."

Sunday, 3 June 2012

Saudi diesel shortages

Diesel shortages in Saudi Arabia?! Now that's a story!


Diesel shortage hits Riyadh
Diesel shortages were recently reported at gas stations in the capital as a large number of trucks and diesel-powered vehicles formed long lines to fill up their tanks both in the city and on the outskirts.


3 June, 2012

Truck drivers say they have noticed a shortage of diesel over the past few days, especially at gas stations located on the Riyadh-Al-Qassim Highway and the Riyadh-Makkah Highway, with waiting times reaching a few hours and in some cases an entire day.

Abdul Aziz Shalaba, who hauls fruits and vegetables between Riyadh and Hail, said the shortage cost him dearly after his diesel-powered truck run out of fuel and he was forced to wait an entire day at a gas station, according to a report in Al-Madinah newspaper.

I was on the Riyadh-Hail Highway and I pulled in at a gas station to fill up but I ended up waiting the entire day for the station to receive a diesel shipment. All of my fruits and vegetables rotted away in the heat,” said Shalaba who added that many other drivers carrying perishable goods had suffered a similar fate.

A gas station worker said their diesel reservoirs often remained empty for days at a time because diesel tankers were not making enough deliveries. “The capacity of our diesel reservoir is 45,000 liters. This amount runs out quickly and trucks and vehicles line up outside the station and onto the road.”

In a statement released on Friday, Saudi Aramco denied all reports of a diesel shortage in Riyadh. The company said it has an abundant supply of diesel and market supply is determined by ongoing studies and annual plans based on customers’ and distributors’ basic and urgent needs.

In a related development, Saudi Customs officers seized 10 diesel trucks with Jordanian license plates leaving Riyadh. The drivers were trying to smuggle the diesel into Jordan

Saturday, 24 March 2012

India: Diesel fuel demand escalates


-- Under no circumstances would I go out and by a diesel vehicle now. If you were planning on running biodiesel, you had better be set up to do it right now. Diesel is replacing a small part of the nuclear power taken out in Japan. Diesel power generation, frequently from small, truck-sized units is attempting to fill in for grid failures in a dozen countries. Small-unit generation is the norm for cities like Lagos. The complex in and around the Taj Mahal in India frequently uses up to 60,000 small generators during blackouts. Diesel is the "fallback fuel" and there isn't enough of it to go around. The death of human industrial civilization will be pronounced at the moment when a sufficient amount of electricity is gone in the right places. 
So the world will fall back harder and harder on diesel and fuel oil. And wars will someday be fought, not over oil supplies... but over refineries. I'm paying almost as much attention to what's happening with diesel as I am with oil prices and everything else.-- MCR

Oil substitution to fuel diesel demand, bleed oil cos more
Oil marketing companies had better brace for bigger losses as demand for diesel goes through the roof. It isn’t just car buyers who are going for the ‘cheaper’ fuel, but even industries are increasingly reaching for it to save on their soaring fuel oil, or furnace oil, costs



23 March, 2012

Going by the Petroleum Planning and Analysis Cell (PPAC), a statistical body under the Ministry of Petroleum and Natural Gas, between April 2011 and January 2012, out of the overall growth of petroleum product consumption in the country, 68% was contributed by diesel alone. 

“This is one more indicator of dieselisation of the economy,” said a PPAC report. “This trend is likely to continue with diesel price remaining lower in comparison to other competing fuels.”
Consumption of diesel, in fact, jumped 7.6% in January, while that of other petroleum products together grew a modest 2.3%. 

Sale of fuel oil, on the other hand, posted a negative growth of 17.3%, hinting at a rapid substitution by the former. The negative growth in fuel oil is expected to continue as long as its price in international markets remains higher than domestic price of diesel, said PPAC.
While fuel oil and petrol are deregulated and sport market-linked prices, diesel is controlled by the government.

Diesel is currently available at a rate of Rs45.28 per litre as against Rs70.65 per litre for petrol and Rs36 per litre of fuel or furnace oil.

With international crude prices shooting up in recent times, petrol prices too have increased and are expected to increase further. This has led to a shift in customer preference in favour of diesel vehicles. So much so, automobile makers have begun scaling up their diesel capacities substantially.

And now, diesel is also fast replacing fuel oil, or furnace oil, in applications such as power generation for factories and telecom towers.

“Power constitutes almost an average 40% of the production cost for industries in general. Now, since companies these days have a fungible multi-fuel model, they always tend to use the cheapest fuel in their generators,” said a top ranking official from Bharat Petroleum.

He said power generation applications consume close to 15 million tonne of fuel on an annual basis and companies are increasingly preferring to use diesel instead of fuel oil, leading to a higher demand and sale of the product.

Analysts Nilesh Banerjee, Rosa Kim, Patrick Tiah and Vikas Jain from brokerage Goldman Sachs, said as much in a March 15 report. “With the regulated diesel prices in India fixed since June ‘11, fuel oil is now effectively 20% dearer than diesel, leading to a likely switch from fuel oil to diesel in factories and power plants, in our view.”

This would likely keep India’s diesel supply-demand tight during the peak power demand summer season, despite 400,000 barrels per day of new refining capacity coming in India in 1H12, the Goldman analysts noted.

For the oil marketing companies, however, the increase in demand for diesel means an increase in under-recoveries, which, in turn, will bear on the subsidy bill, expected to reach its historical peak next financial year.

Oil marketing companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently posting a loss of Rs13.10 per litre on sale of diesel and have posted a loss of Rs56,732 crore for the period April to December 2011.

(crore is a unit in the South Asian numbering system equal to ten million ( 10000000; 107), or 100 lakhs)

Wednesday, 21 March 2012

Diesel shortages looming


Threat of diesel rationing in Europe
by Gunnar Lindstedt
16 March, 2012

At the homepage of the Stock Market Guide, (a service provided by the Swedish magazines Private Business and Business Weekly), is an excerpt from Gunnar Lindstedt’s article “Dark cloud over new oil” that was published in this week’s edition of Business Weekly. The headline they chose to use was “Threat of diesel rationing”. The following is a translation of the text:


Oil shortage: The world’s oil production has leveled off which is causing a diesel shortage in Europe. Kjell Aleklett, a professor at Uppsala University, says that people should drive gasoline-powered vehicles if they want to be driving ten years from now.

Despite dramatic changes in price the oil industry has not been able to increase production. At the same time there have been large changes in how much oil is actually available on the world market.

“Between 2005 and 2010, a period of five years, the oil exporting nations reduced their exports from 48 million barrels per day to 44 million barrels per day. That means that 4 million barrels per day have disappeared from the market”, says professor Kjell Aleklett at Uppsala University.

“Furthermore, China, India and other developing nations have increased their imports by a total of 3 million barrels per day. In other words, the oil available to the OECD-nations has decreased by 15% in 5 years.”

As the oil exporting nations in the Middle East keep more of their oil for domestic consumption while Asian nations are dramatically increasing their imports, the shortage of oil in the industrial world is becoming ever more apparent.

At the same time, oil consumption in this part of the world has declined since the economic crisis of 2008 – people are driving less and industry’s demand has decreased. But a sign of the developing oil shortages is the continued high oil price.

And high oil prices lead eventually to economic recession. The question is how high the prices can go. If the economy stagnates it will be difficult for the oil companies to recover expensive investments in difficult-to-produce oil. As a consequence, investment will decline.

This departure from the principle that increased demand leads to more investment and greater supply has already become manifest in terms of access to diesel fuel in Europe.

“At the moment the shortage of diesel in Europe is 30-40 million cubic metres”, says Michael Löw who is managing director of Preem.

(Preem is the biggest oil company in Sweden, with refining capacity of more than 18 million m3 of crude oil every year. Their two refineries are among the most modern, environmentally-friendly in Europe and the world, 


The USA exports diesel fuel to Europe and we export gasoline to the USA. But if the Americans begin to drive more diesel vehicles then the shortage of diesel here will become even greater.

Since a large proportion of the diesel fuel is used by trucking to transport goods that are essential for society it may well happen that diesel for private motor cars must be rationed in future. From a political standpoint diesel-powered cars have been supported in Europe since they are regarded as more environmentally friendly. That measure will now hurt us.

“If you want to be certain that you can drive a car in ten year’s time (in Europe) then you should drive a gasoline-powered vehicle”, says Kjell Aleklett.

“In ten years diesel fuel in Europe will probably be rationed.”

The European refinery capacity for diesel production is far too small relative to the demand. But the oil industry nevertheless does not want to invest in new plant since the profit margins are low and the future outlook is uncertain.

“The (Swedish) government says that in 2030 our driving will be fossil fuel-free”, says Michael Löw.

“But since it takes at least 19 years to turn over the car fleet we should be buying electric vehicles from this point on which is not happening. 

The politicians are leaving us in a vacuum – shall we close down our activities or continue to invest?”

Saturday, 17 December 2011

Energy news

Diesel runs dry in southern China gas stations - report


15 December, 2011,  2:50am GMT


Widespread diesel shortages are hitting southern China, with many filling stations posting "no diesel" signs ahead of high seasonal demand, the China Review News reported on its website.

The newspaper reported long queues at filling stations along the expressway linking Beijing and Hong Kong, while in the southeastern province of Zhejiang, a line of trucks awaiting fuel at a gas station stretched for 2 km.

Supplies of diesel, the country's main transportation fuel, have been tight in some regions for several months as refiners throttled back output in the face of refining losses and because of maintenance. Sporadic diesel shortages spread after the government reduced gasoline and diesel prices on Oct. 9.

For article GO HERE



Asia frets over oil as US eyes new Iran sanctions


December 15, 2011 7:35am EST

Plans for fresh U.S. sanctions to isolate Tehran have sent shudders among Asian governments who fear they will have no way to pay for Iranian crude imports and face rising costs to fuel the region's growing economies.

Top buyer China, meanwhile, is looking to cash in on the pressure Tehran faces to snap up discounted Iranian crude.

At stake is around 1.4 million barrels of oil Iran ships to Asia every day, meeting 10 percent of demand from top buyers China and India. South Korea, Japan and India are scrambling to find ways to keep the oil flowing.

Any restriction on oil supplies from Iran, the world's fifth-largest crude exporter, could drive up already high oil prices and threaten economies already facing the impact of the euro zone debt crisis.

"This is an issue that could have a big impact on the global economy in terms of crude prices, so our nation will pay close attention to this with grave concern," said Japanese Chief Cabinet Secretary Osamu Fujimura, adding his government was in "active negotiations" with Washington on the matter.

Japan is in talks with U.S. diplomats about a possible waiver to U.S. legislation that would make it more difficult to pay Iran. South Korea would also seek an exemption if the bill is signed into law, which U.S. Congress expects to send to President Barack Obama as early as this week.

For article GO HERE


Persistent drought in Romania threatens Danube's power
Drop in the level of the river's waters means that nuclear reactor may have to close down


the Guardian,
13 December, 2011

In Cernavoda, a small town in southeast Romania, social housing projects stretch all along the left bank of the Danube. The now dilapidated buildings sprang up in the 1970s and 1980s, after the dictator Nicolae Ceausescu decided to build the country's first nuclear power plant there.

In his ambition for power and prosperity, he also ordered a canal to be built from Cernavoda to Constantza, a port on the Black Sea, to shorten the trade route by 400km. The excavations were done by thousands of political prisoners, many of whom died.

Today, 21 years after the fall of communism, the threat to Cernavoda is not from dictatorship but the drought that has hit Romania since August. "Look at the water level," said Vasile Mogos, who lives in a council flat by the river. "I would never have imagined that the Danube could fall so low."

The Danube crosses Europe from west to east over 2,850km, from its source in Germany's Black Forest to the Black Sea in Romania. In its path Germany, Austria, Slovakia, Hungary, Croatia, Serbia, Bulgaria and Romania all exploit the waters of Europe's second-longest river after the Volga.

The first reactor in the Romanian nuclear power plant, which uses Canadian CANDU reactor technology based on natural uranium and pressurised heavy water, came on stream in 1996. A second reactor was built in 2007, and three others are planned, since the Romanian government counts on nuclear power for energy self-sufficiency.

The two reactors in the Cernavoda plant generate 20% of those needs and were built on the banks of the Danube to use its waters for cooling.

Early this month, the Danube's flow rate in Turnu-Severin, a town in southwest Romania, home to the country's largest hydroelectric power plant, was 2,400 cubic metres per second, 63% of the usual average of 3,800 cubic metres per second. Hidroelectrica, the public corporation in charge of delivering the energy produced by the plant, is generating only 1,800MW instead of the usual 2,100 MW.

In 2003 the drought in Romania was so severe that it led to the shutdown of one of the Cernavoda reactors. Cantemir Ciurea, director of the National Committee for Controlling Nuclear Activities, said: "We immediately put in place a new system that allowed the pumps to extract the cooling water from much lower levels."

The Romanian authorities have not, however, discounted the possible closure of a reactor if the drought persists.

The lack of rain is also worrying for hotel owners in the Danube delta, who have lost some 10,000 tourists this year, with 250 boats and craft stranded, waiting for the rains before they can sail again. Losses are now counted in millions of euros.

Second world war battleships have even resurfaced on the Sava river, a tributary that joins the Danube in Belgrade, Serbia.

The drought is also threatening the fragile ecosystem. According to the World Wildlife Fund (WWF), the race to expand agricultural land in the 20th century has already eliminated 80% of the Danube's wetlands.

"The wetlands along the riverbanks were able to absorb water in the event of flooding and free it in periods of drought," explained Andreas Beckmann, director of WWF's Danube-Carpathian programme. "We are going to see more and more of these extreme situations. Our best response is to protect and strengthen our green infrastructure



Pakistan: trains halted as diesel ends for Railways


16 December, 2011

Pakistan Railways (PR) has been hit by a new crisis as there is no more diesel available for the trains to continue service, Geo News reported Thursday.

According to PR sources, all Lahore-bound trains are at halt due to non-availability of diesel and the service would remain suspended until diesel would be supplied.

Ghauri Express could not leave for Faisalabad from Lahore at 9am today due to the same problem. Trains arriving from Peshawar



Iran says Saudis agree not to up production to compensate if Iranian crude under sanctions


Washington Post,
15 December, 2011

VIENNA — Iran’s oil minister said Wednesday that his Saudi counterpart had agreed not to up crude production to replace Iranian oil in case an international embargo on Iranian oil impacts Tehran’s ability to sell its petroleum.

For article GO HERE

Saturday, 12 November 2011

Increase in Global Fuel Shortages, Price Hikes, and Subsequent Unrest

All of these stories have been cover a period of no more than 2-3 days


These are stories that would be lost otherwise - simply 'local' emergencies that each have their own rationalisation and justification.

But brought together they a paint a picture of rising fuel prices and shortages leading to suffering and unrest - as predicted by the Peak Oil movement.

These stories have been brought together by Collapse Net.  I have added a couple of my  own.  Many thanks to Jenna Orkin and Max Mogren for their work.



Brent crude oil may spike above $147/bbl: IEA

10 November, 2011
NEW YORK (Commodity Online): The International Energy Administration (IEA) said on Thursday that if unrest in Africa and Gulf continue, Brent Crude Oil could spike above its all-time high of $147/bbl very easily and this would ultimately put further strain on global economy.

"In 2011, $102 is the average price through to today which means the global economic recovery is at risk. We are in the danger zone for the global economy at current levels. There is a possibility that production growth from the (Middle East and North Africa, MENA) region may not be what the consumers would like to see. This would be a pity for the global economy, a pity for the oil sector and a pity for those governments”, IEA economist Fatih Birol spoke to reporters in a news conference.

OPEC has been adamant in not releasing more oil into the market. However, with IEA report clearly stating that high oil prices are damaging the economy, OPEC may face pressure from its consumers to release more oil. The next OPEC meeting is due in December



Officials report diesel supplies short in Nebraska

11 November, 2011


(AP)  LINCOLN, Neb. — Gasoline and diesel shortages at fuel terminals in the Upper Midwest have forced fuel truck drivers to sit in line for hours, waiting for fuel to arrive via pipeline.

Other truck drivers have seen diesel prices rise, nearing $4 a gallon in Nebraska and passing that in the Dakotas.

"I've never seen anything like it in my life," Dick Salem, president of Lincoln Trucking Lightning, told the Lincoln Journal Star (http://bit.ly/vaLoDK). "We went through three big-time shortages in the '70s, and it was never like this."

One of the two fuel terminals south of Lincoln hasn't had diesel fuel for at least a month. When a supply comes in to the other, it runs out in a couple of hours.

"It's as bad as I've ever seen it," said Tom Garner, energy division manager for Farmers Cooperative.

For article GO HERE



Saskatchewan, Canada:Diesel shortage affects oilpatch traffic

Refinery woes hinder southeast




10 October, 2011

The shortage of diesel fuel is slowly shutting down the oil industry in southeastern Saskatchewan, according to the owners and operators of trucking and oilfield service companies, whose trucks and equipment run on diesel.

The slowdown has been caused by a shortage of hydrogen sulphide at Suncor's Edmonton refinery and an explosion at the Consumers' Co-operative Refineries Ltd. refinery in Regina last month, which damaged the diesel processing unit.

For article GO HERE


Nebraska, USA: Diesel fuel shortage hits state


Diesel fuel is in such short supply in the upper Midwest that people in the fuel industry say it's the worst shortage they can remember.

"It's as bad as I've ever seen it," said Tom Garner, the energy division manager for Farmers Cooperative, who's been in the business 33 years.

"I've never seen anything like it in my life," said Dick Salem, president of Lincoln Trucking Lightning. "We went through three big-time shortages in the ‘70s, and it was never like this."

The shortage particularly is bad in the Lincoln area. One of the two fuel terminals south of Lincoln hasn't had any diesel fuel for at least a month, Garner said, and the other has had sporadic supply that runs out in a couple of hours.

For article GO HERE


Nigeria: Fuel subsidy removal: Youths mobilise for hunger strike, demonstration

10 November, 2011


Nigerian youths have advised President Goodluck Jonathan to tread softly on the plan to increase the pomp price of fuel in Nigeria by means of subsidy removal on petroleum product, stating that the action could set Nigeria ablaze.

The youth under the aegis of National Youths Council of Nigeria advised the government not to set a rigid date for its plan to remove the subsidy, but should rather weigh available options as a compelling alternative.

Vowing to resist the plan by the government, the youth said the government should start taking positive steps towards fighting corruption among public officials both at the federal and state levels, stressing that the amount being looted on a daily basis by these officials were sufficient enough to cushion the subsidy.

For article GO HERE



Protest against fuel price hike, trade union members arrested


the Hindu,
9 November, 2011



Several trade union members were arrested in the city on Tuesday after they attempted to stage rail roko agitation in support of their 10-point charter of demands.


Heeding to a nation-wide protest call given by all trade unions, members of Centre of Indian Trade Unions, Labour Progressive Front, Indian National Trade Union Congress, All India Trade Union Congress, Bharatiya Mazdoor Sangh and All India Central Council of Trade Unions, numbering over 300, assembled near the Tiruchi junction to carry on with their agitation for which permission was not granted by the city police.

The trade union members were taken into custody after they defied the police directive and attempted to go ahead with their plan. The members squatted on the approach road leading to the junction for some time demanding that the Centre control the hike in the prices of petrol, diesel, LPG and essential commodities, and withdraw sale of shares of public sector and government undertakings.

Creation of a national fund and passing of central protection act for unorganised labourers; withdrawal of new pension scheme; implementation of a guaranteed pension scheme for all sectors; grant of Rs. 10,000 as minimum wage; and filling up of vacant posts in government and public sector undertakings were among their other demands. All those arrested were later released.





Colombia: 32 injured in Ecopetrol protests: Union



9 Novemember, 2011


Clashes between Ecopetrol and police at the state oil company's plants in the cities of Cartagena and Barrancabermeja Wednesday left at least 32 protesters injured, said the president of the oil workers union. According to Ecopetrol, the protests have not affected oil production
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Rodolfo Vecino, president of the oil workers' union USO, told Colombia Reports that two workers have been arrested, 24 protesters were injured in Barrancabermeja and another eight were wounded in Cartagena.

According to the oil union director, the protest was in defense of the workers' right to associate and collectively bargain wages. Vecino accused Ecopetrol of having pressured workers to leave the union.
The director of the USO, repsresenting a quarter of Ecopetrol workers, added the protest was peaceful until riot police interfered.

Ecopetrol spokesman Juan Guillermo Londoño told Colombia Reports that "Ecopetrol respects the right to association, but we do not agree with this way of coming to a dialogue."

According to the USO leader, this "is only talk, the reality is different. They are talking about dialogue, but they are attacking us through the riot police."

The unrest at Ecopetrol is the second oil workers protest turning violent this year; in July riots erupted at the largest oil field of Canadian oil company Pacific Rubiales, who protested the dismissal of hundreds of their colleagues.


Plan to hike CNG price again amid protests



Bangladesh is set to raise prices of Compressed Natural Gas (CNG) once again this year.

Finance Minister AMA Muhith hinted about a hike in Dhaka yesterday. 
 He said, price of CNG might be increased further this year to align itself with the international market price. 

  Talking to reporters at his ministry, he said although the price of CNG is low, the common man was not getting any benefit out of it. 

  Muhith observed that there is hardly any difference between the fares of CNG-run and diesel-run transports. So, he said there is a plan to equal the price of CNG to that of diesel in phases. 

  “It is necessary to increase the CNG price. It must be equal to diesel,” he said, adding “CNG does not give you extra benefit since this benefit does not go downwards.” 

For article GO HERE



Load-shedding likely to resume in Uganda



10 November, 2011

Kampala, Uganda --- ESI-AFRICA.COM --- 10 November 2011 - Ugandans can begin to prepare for darker nights in the wake of a warning by Umeme Limited ? the country’s principal power distribution company ? that 24-hour load-shedding is likely to be resumed.

This warning came after the Uganda Electricity Transmission Company Limited (UETCL) had informed Umeme that thermal diesel electricity generator Aggreko had indefinitely switched off its Mutundwe station due to a shortage of diesel to run the power plant.

In a statement released here, Umeme outage project manager Florence Nsubuga said the shutdown had cut electricity supply to the national grid by 50MW, causing increased load-shedding.

“The current load-shedding schedule has been changed as per instructions from UETCL,” said Nsubuga, adding: “Aggreko has been supplying 50MW to date and during that time, the deficit during peak time varied between 100MW and 140MW. Now the situation has become worse, and we are notifying customers to plan accordingly.”

But UETCL managing director Erias Kiyemba said the power plant switch-off would be short-lived, although he could not commit on when the plant would be switched on


Fuel shortage hits Zambia’s capital, Lusaka

9 November, 2011


Zambia's capital Lusaka has been hit by severe shortage of fuel as a strike action by fuel tank drivers who deliver fuel to filling stations enters day three. The fuel tank drivers are demanding for better working conditions and a salary pay rise of about K 5 million (US $ 1,000) across the board and other unpaid arrears amounting to about K10 million (US $ 2,000) for each from their employers.

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Many of the striking workers belong to oil companies which include Total and Ody’s Oil companies which are the main suppliers of petrol and diesel around Lusaka and some parts of Zambia. 
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A round check at most filling stations in Lusaka found many of the stations open but without any of the commodities as many motorists heaped the blame on the oil companies’ management.
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“They need to pay these workers their dues because they are creating fuel shortage in the country and others are holding fuel as the result the prices will soon go up,” said a motorist who only identified himself as Lucky.
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Despite the shortage in the fuel commodity the prices of fuel in the capital has remained the same but fears were rising that the prices will soon be hiked if the strike action continues which might also affect prices of goods.
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Currently one litre of petrol costs about K8,200 which is about US $2 dollars and diesel per litre is selling at K7,400 which is almost US $ 2 dollars at most filling stations.
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The ministry of energy has not yet issued any statement.




Power surge leaves western Kenya without petrol

12 November, 2011


Fuel shortage has persisted in western Kenya since the weekend when a power outage disrupted pumping of the products.

Kenya Pipeline Company operations manager Philip Kimelu said normal pumping resumed on Sunday. Most of the filling stations in Nairobi, however, had no fuel until Tuesday evening.

The outage, lasting 14 hours, is understood to have led to a breakdown of valves in Nairobi which in turn affected onward supplies to western Kenya.

“We have managed to close the gap and are now loading all requests for pump overs,” said Mr Kimelu, adding that requests for delivery had doubled.

“We have noticed a 60 per cent increase in uplifts. We normally pump 2,000 cubic metres for Nairobi but this has now doubled to 4,000m3,” he said on telephone.

Records provided by the pipeline co-ordinator show that Nairobi has received 9.5 million litres since operations return to normal. Industry executives, however, said they were receiving less products especially in western Kenya.

“KPC says it has a lot of stocks. But our trucks still cannot load as per orders. There is no availability of ready stocks in Nakuru, Kisumu, and Eldoret,” said Mr Peter Njeru, the managing director of Riva Petroleum.

Officials at Kenya Shell said their tanks in Nairobi were now full with products after they were unable to load on Friday and Saturday. “It could be a distribution and logistics issue,” said a manager at the firm.

There are reports of hoarding products in anticipation of higher prices during the mid monthly price reviews by the sector regulator, a claim denied by major oil marketers.

MPs have accused major oil companies of hoarding products and causing an artificial shortage in parts of the country.

“The pipeline storage network is full with products worth nearly one month consumption. We want to be told why marketers are hoarding products, causing a shortage,” Karachuonyo MP James Rege, who chairs the Parliamentary Committee on Energy, said Wednesday.

Independent oil marketers said hoarding of products was becoming common in the run up to price reviews, announced on the 14th of every month.

‘I have not had Super for two weeks. Most independents are out of premium petrol stocks while diesel supply is on and off. There is no depot willing to sell to us,” said Mr Venancio Kariuki, an independent dealer in Nairobi.

The independents, small Kenyan-owned firms, complain of being crowded out since the inception of price controls last December. Dealers say wholesale prices encroach on their margins.



Malawi blames vendors for fuel shortage
11 November, 2011


Malawi Police Service and the Malawi Energy Regulatory Authority (MERA) a body that regulates fuel in the country are blaming fuel vendors for the shortage of fuel in the country. The police so far have launched a clean-up on black market fuel vendors that government is condemning for the fuel shortage at filling stations in the country.

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The operation known as “Kusaka” (tracking) witnessed cops confiscating about 10 000 litres of fuel bought without purchasing permits document.
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In previous days, Natural Resources Energy and Environment Minister Goodall Gondwe expressed his dissatisfactions that despite pumping 16 million litres of fuel in the past five days, fuel queues were still long due to black market fuel vendors.



Tanzania: TPA refutes claims over fuel shortage
9 November, 2011

Dar es Salaam.  Tanzania Ports Authority (TPA) has refuted claims that it caused fuel shortage in the country by allowing a vessel carrying oil destined for Burundi to skip the queue and unload the fuel at the Kurasini Oil  Jetty (KOJ). 

The TPA corporate communication manager, Mr Franklin Mziray, admitted that the authority allowed a vessel christened Miss Marille, which was carrying fuel for Burundi and Rwanda, to skip the queue since there was shortage of fuel in the two countries.

For article GO HERE





Shortage of diesel fuel hits mainland


8 November, 2011

An unprecedented diesel fuel shortage in the industrial-centralized coastal regions of China has forced about 2,000 privately owned gas stations there to close, threatening the local economy, an industry chamber and experts said.

Despite a nationwide tightening-up of diesel supplies since October, major cities such as Beijing, Shanghai and Guangzhou are not imposing any restrictions on supplies, according to the China Chamber of Commerce for the Petroleum Industry.

Zhejiang, Jiangxi and Gansu provinces were among the hardest-hit regions, China Petroleum & Chemical Corporation, or Sinopec, said in its statistics.

Trucks were seen lining up at gas stations in these cities for hours. 

Drivers were allowed only a limited amount of diesel fuel, forcing desperate drivers to travel around the city to get their tanks filled, a driver in Huzhou, Zhejiang Province, told the Xinhua News Agency. The line off the No. 104 national highway section in Wenzhou, Zhejiang Province, was at least three kilometers long, according to the Beijing News.

Wang Yong, a truck driver, told the Global Times that they are so desperate for diesel that they have to pay 10 percent more than usual.

"Nine out of 10 gas stations are out of oil, and the one that does have stock only allows us to buy 200 yuan ($29) worth of oil each time," he said, adding that deliveries are often postponed because of the shortage.

Dong Xiucheng, the director of the China Research Center for the Oil and Gas Industry Development at the China University of Petroleum, attributed the diesel scare to multiple factors.

"Local governments ordered factories to implement power rationing to meet emission targets, meaning their electricity supply is suspended at certain times. To finish orders on time, many export-oriented businesses in the south chose to turn to diesel generators for a power supply to maintain and accelerate production. Demand then shot up," he said.

The suspension of production by refineries due to routine safety overhauls in August and September also contributed to the reduction of the diesel supply, Dong added.

Shan Weiguo, a senior economist at the China National Petroleum Corporation Research Institute of Economics and Technology, told the Global Times that the shortage not only undermines the national economy but also affects the daily lives of ordinary people.

"The shortage will trigger chain reactions. Heating in the winter is likely to be affected as the transportation of coal is delayed," he said.

A new round of stimulus measures announced by the United States has pushed international oil prices to a six-month peak, raising expectations of domestic diesel prices at the same time.

For article GO HERE



China: diesel thieves on prowl

9 November, 2011


China, the world’s biggest energy user, is facing a growing diesel shortage as domestic fuel prices are increasingly out of line with global energy prices.

China periodically faces diesel shortages when the state-set diesel prices are below levels at which Chinese refineries can make a profit given prevailing international crude prices, because some producers shut down rather than sell diesel at a loss.  The supply problems are prompting speculation that the authorities may be forced to switch to market prices.

Beijing’s tough energy policies also sparked a diesel shortage last fall, when the government restricted energy supply in some areas and demand for diesel-fired generators grew.


This time around, reports of long lines at fuel stations have been rising ever since a poorly-timed fuel price cut at the beginning of October. The shortage reached a new high this week with an epidemic of diesel stealing in Shandong province on China’s east coast.