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China issues second batch of fuel export quotas for 2019, up 30% on first batch: traders

[SINGAPORE] China has issued a second batch of refined fuel export quotas for this year totaling 23.79 million tonnes, about 30 per cent more than the first batch, trading sources briefed on the matter said.

The quotas comprised 9.09 million tonnes of gasoline, 9.175 million tonnes of diesel and 5.525 million tonnes of jet fuel, the two sources said.

China manages annual fuel exports by issuing quotas progressively in batches.

The increased quotas come as China has been boosting its exports of refined products, with record refinery production exceeding domestic fuel demand growth.

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The fuel surplus is set to grow further, as privately owned Hengli Petrochemical's 400,000 barrels-per-day plant in northeast China ramps up to full capacity later this month.

The second batch of quotas, which will be valid until the end of the year, brings the total issued so far for 2019 to 42.15 million tonnes.

All the quotas were issued to state oil companies - CNPC, Sinopec, CNOOC, Sinochem and China National Aviation Fuel, the sources said.

They will also fall under the category of general trade, under which refiners will receive tax refunds for exports of fuel products, they said.