SINGAPORE: China has issued 12.8 million metric tons of refined fuel export quotas in its second batch of allowances this year, less than a year earlier, said China-based consultancy JLC and two trade sources on Friday.
For low-sulphur fuel oil (LSFO), the second batch of export quotas amounted to 5.2 million tons, up 1.2 million tons from last year, they said.
This brings the total volumes for the second batch of export allowances to 18 million tons. China manages its refined oil exports via a strict quota system, using exports as a tool to balance and ensure the domestic market is sufficiently supplied.
China’s commerce ministry did not immediately respond to a faxed query for comment from Reuters.
The second batch of allowances last year was 14 million tons for gasoline, diesel and jet fuel, and 4 million tons for low-sulphur marine fuel.
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For this batch of LSFO quota, state-owned oil majors Sinopec and CNPC were granted 4.51 million tons, or 87% of the total volumes, according to JLC.
Exports of refined fuel products for the first two months this year totalled around 4.08 million metric tons, official customs data showed.
Meanwhile, industry estimates for March and April refined fuel exports were at around 3.3 million tons and 3.1 million tons, respectively.
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