Gasoline stations jammed as fuel crisis deepens


Dennis Ng


August 12, 2005


An increasingly acute fuel shortage in southern China is reaching crisis proportions, with long lines of trucks and cars at filling stations throughout Shenzhen and other areas.

Recent news reports in Guangdong said many filling stations in the fast- growing province have run low on fuel because of Typhoon Haitang, which hit Taiwan in the middle of last month and kept many oil tankers out of harbor.

Some reports said mainland firms are balking at supplying the domestic market because it is unprofitable. Other reports said some filling stations are withholding retail supplies out of fear that wholesalers will be unable to deliver to them in the near future.

Both truck and car drivers reported having to go from one filling station to another and facing long lines to find fuel. Because prices of gasoline are so much lower in Shenzhen and other areas over the border, Hong Kong drivers often go over the border to fill up.

As an example of the problems truckers face, a major transport union said Thursday that rising prices may force hundreds of self-employed container truck drivers and dozens of transport firms to impose a fuel surcharge to transport goods from Guangdong factories to Hong Kong container terminals.

Lok Ma Chau China-Hong Kong Freight Association chairman Stanley Chiang said the union has suggested the levy because many self-employed truckers have lost income as a result of the fuel increases over the past year.

Hong Kong has 15,000 container trucks providing cross-boundary services between the container terminal in Kwai Chung and factories in several Guangdong cities.

The association's 300 members own 3,000 trucks, or 20 percent of all cross-boundary container trucks.

Under the guideline, Chiang said the association will suggest that drivers impose the fuel levy based on 0.5 yuan per kilometre.

He said, for example, drivers were asked to impose a HK$100 fuel levy for a return trip between Dongguan factories and the Kwai Chung container terminals.

Chiang said he expects similar surcharges of varying amounts to be added by truckers going to factories in other Guangdong cities such as Shantou, Shenzhen and Guangzhou.

Although self-employed container-truck drivers earn between HK$20,000 and HK$25,000 a month, he said rising fuel prices have cut considerably into their incomes.

Recent increases in fuel prices as a result of rising global prices for crude oil have driven up costs for each driver by an average of between HK$3,000 and HK$5,000 each month.

Hong Kong drivers and transport companies face stiff competition from their mainland rivals, making it difficult for them to increase the transport cost. But Chiang said drivers could impose fuel surcharges, which meant they could reduce the levy or even cancel it if fuel costs fall.

He said the association has considered requesting a meeting with senior government officials in Hong Kong for a possible reduction in the diesel tax to make the Hong Kong logistics sector competitive in the Pearl River region.

Meanwhile, he said, most drivers are faced with going to several petrol stations to fill up. Almost every container truck driver buys diesel in the mainland where prices are cheaper than Hong Kong, he added.

dennis.ng@singtaonewscorp.com

 


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