China sets quota for export of fuel
China
BEIJING, December 29, 2016 – China’s Ministry of Commerce has decided that the country’s four state majors will be allowed to sell 12.4 million tonnes of petrol, gasoil and jet fuel to international markets for the first round of licences in 2017.
The figures, derived from a notice marked December 23 seen by Reuters on Thursday, represent a cut of 40% to previous quotas.
The rise of export quotas to 46.1 million in 2016, an 80% increase over the previous year, did little to persuade major players to push their product beyond the border, with only 43 million tonnes being exported.
The decision also carries on the new ban on independent refineries from moving their stock to international markets. The announcement to put a stop to export from these teapot refiners, as they are called, was issued by the ministry on December 16. Although private companies do not make up a huge part of the production mix, it was expected that allowing them to export abroad would bring much needed competition to the sector.
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