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October 28, 2021 | China Rationing Diesel

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

China has begun to ration fuel amid the ongoing energy crisis. As reported by the BBC, trucks in China may only fill their tanks with 100 liters (10% capacity) of diesel, with other areas reportedly only allowing 25 liters. The city of Fuyang is limiting purchases and charging drivers a surcharge of up to 300 yuan to fill up their tanks. The fuel shortage will affect both domestic and international goods as trucks simply cannot drive to their destinations. Despite surging demand, all fossil fuels are in tight supply and have seen drastic upticks in price. Jeremy Stevens, Chief China Economist at Standard Bank, told the BBC from Beijing that companies have already begun using diesel generators to maintain factory operations. World leaders are urging this instant switch to renewable energy and net-zero emissions, but the technology does not currently exist to power the world. The energy crisis will contribute to supply shortages worldwide.

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October 28th, 2021

Posted In: Armstrong Economics

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