Road fuel deliveries in north China's Hebei province are facing some disruptions because of traffic restrictions imposed to curb a worsening Covid-19 outbreak, although the impact on prices and demand is so far limited.
Hebei has been hit by China's most serious coronavirus outbreak for several months, with another 53 confirmed cases yesterday, taking the total to 92 since the start of this year, according to local authorities.
The infections are centred on the provincial capital of Shijiazhuang. Hebei authorities have closed many expressways through the city, including some connections with Beijing, and urged vehicles to stay away from the worst-hit areas.
The transportation curbs and recent heavy snowfall in Hebei have interfered with some gasoline and diesel deliveries, mainly into or from Shijiazhuang and nearby areas. Changqing, a major fuel wholesaler based in Shijiazhuang, has been forced to cut deliveries to retailers since the transportation controls were imposed yesterday. The 120,000 b/d independent refinery Xinhai, which is located at Hebei's Huanghua port, has been less affected – deliveries have slowed but still can reach buyers by using smaller roads rather than expressways.
Wholesale road fuel prices and overall demand in Hebei have not been notably affected, as the outbreak has only affected limited areas so far. Fuel consumption in other cities such as Tangshan, a key industrial hub and major port in northern Hebei, has helped maintain overall demand in the province. Recent gains in international crude values have helped push gasoline and diesel prices in the province higher, with gains of more than 50 yuan/t ($0.92-1.04/bl) yesterday.
Hebei is also a key market for independent refiners based in neighbouring Shandong province. Fuel sales from Shandong to Shijiazhuang have fallen, but sales to other places in Hebei have only seen a limited impact, a Shandong independent said. Trucks from Hebei are still allowed to enter Shandong to load fuel, but drivers must stay inside their vehicles at all times.
