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Over the past few weeks, many parts of China have been experiencing diesel fuel shortages. The existence of the shortages has been well-chronicled by many Chinese and foreign media outlets, but there has been much less coverage and analysis of the factors driving the shortage. This year’s diesel shortage appears to be one of the most acute since those 2004 and 2005, when power shortages forced many power consumers to turn to diesel powered generators. Déjà vu is the operative word today, at least in part. Beijing’s desire to see lower energy intensity in the economy is manifesting itself through power supply restrictions to industrial users in Guangdong, Guangxi, Jiangsu, Zhejiang, and other provinces, according to Sinopec. The result is that power demand normally supplied by coal is now being…