Local governments in some Chinese provinces have begun distributing coal vouchers to enable citizens to heat their homes. writes Bloomberg.
In Shuzhou, a metropolitan area in Shanxi province, the authorities distributed coupons to 47,000 families. Each coupon is worth two tons of subsidized coal to last for winter and early spring.
Fuel shortages have led to higher prices and widespread restrictions on the supply of electricity. This triggered record production (over 12 million tonnes per day), which has brought the market back into equilibrium for now. However, the residents of the district, just in case, began to stock up on dried corn cobs, which can be used for firewood.
The issuance of coupons sparked a heated debate, reminiscent to the Chinese of the Mao era, when families were forced to buy basic necessities at quotas set by the government.
Meteorologists warn cold weather and prolonged drought in the coming months. Chinese thermal coal futures on the Zhengzhou Mercantile Exchange are up 11 percent this week.
Lack of coal has become one of the reasons for the energy crisis in China. At the end of September, power outages in residential buildings and at work began in the country due to a lack of electricity.
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