More noise from China about oil and gas supply shortages. In my earlier post below I noted how all gasoline sales are state controlled. They are also heavily subsidised to the tune of about $10-$20/barrel. China: Where has all the oil gone? IEA wonders discusses this but the IEA also denies that China could really be using all the oil they are buying and demand must taper off. I would not trust the IEA on this one.

Also recent headlines: Gasoline stations jammed as fuel crisis deepens and China Rationing Gasoline And Diesel Fuel.
"Asia's largest oil refiner Sinopec relies on imports for much of its crude for refining, so the surging crude prices on the world market have greatly hurt the oil giant's refining business, when the central government still controls the price of domestic refined oil to stabilize the market," a CNPC official was quoted by the China Daily."

"I don't think the situation is that severe," an analyst in Beijing said. "Perhaps the smaller, independent retail gasoline stations may have some problems in getting a stable supply of diesel and gasoline. Car owners, therefore, might have restrictions on the amount of fuel they can pump each time."