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China braces for leap in gas prices

ENERGY

June 09, 2008|Don Lee, Times Staff Writer

In this environment, Roy Tong, 39, said he and his wife didn't dare travel long distances in their Citroen sedan. The Shanghai residents had planned to drive to Hangzhou, a resort city about 120 miles away, for a long holiday weekend. But worried that they wouldn't be able to fill up on the return trip, the Tongs decided to take the train instead.


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"Right now, we're taking the taxi to get groceries," said Tong, noting that the car has a quarter tank of gas.

Farmers, who are a major user of diesel, say they're struggling to buy fuel for their trucks, tractors and harvesting equipment. Some complain that the government's price control amounts to a subsidy for the rich who can afford to buy a car. Why not subsidize farmers directly, they wonder.

In Anhui province, Wang Xian, 25, recently queued up for an hour at a station, only to find it was out of diesel. Wang says he had no choice but to turn to a black-market dealer, who charged him $3.75 a gallon, about a dollar more than at the pumps.

"We want to hoard some diesel too if possible," said Wang, who grows wheat, soybeans, corn and sweet potatoes. "But in order to do that, you have to have some connections. And we don't."

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don.lee@latimes.com

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