China raises fuel export quota for first tranche 2023 to boost refining

JLC and Longzheng A consulting firm that monitors China’s fuel quota policy said Tuesday that China has increased its export quotas for refined petroleum products by nearly half in the first tranche of this year compared with last year. This is an attempt to boost refining and capture a larger export market share in the face of slowing domestic demand.

The report said the Chinese government has released a quota of 18.99 million tons for the export of gasoline, diesel and most jet fuels. This is a 46% increase from the 13 million tons in last year’s quota. JLC and Longzheng named China Petrochemical Corp (Sinopec), China National Petroleum Corp, China National Offshore Oil Company and Sinochem Group, all Chinese state-owned enterprises. Privately owned Zhejiang Petrochemical Corp may export a total of 18.73 million tons of fuel.

The Chinese government is propping up a slowing economy by encouraging refiners to increase their operations to take advantage of strong exports. According to analysts, the recent increase in oil export quotas reflects that domestic fuel consumption is stagnating. The number of COVID-19 cases jumped after the announcement of the lifting of epidemic control measures, and travel and economic activity in China were hampered.

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