Sunday, September 11, 2011

Djermaya refinery delivers energy crunch

September 7, 2011: With the inauguration of the Chinese oil refinery in Djermaya, Chad, the market is doing its best to adjust to the new addition. The timing could not have been worse, as Chad finds itself in that period between the close of the rainy season and harvest, where the roads are at their worst.
Between a 40%+ tax on imported goods and the subsidized cost of production in Djermaya, imported gasoline and diesel just cannot compete with the price offered at the Chinese refineries.
Every gas station and fuel distributor in Chad (and perhaps elsewhere) wants to buy the cheaper fuel from the new refinery. As a result, suppliers are having difficulty keeping up with the demand, and everyone from motorcyclists to transportation companies to private companies who use generators, from N'Djaména to Goz Beïda, is struggling to provide their need for energy.
Please pray that immediate energy solutions may be found soon, and that long-term improvements will also be felt as time goes by.

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