China Cracks Down On Tax Loopholes In Blending Fuels Imports

OilPrice.com | May 14, 2021 at 3:30 PM
  • Chinese authorities are looking to ease the domestic fuel glut and reducing pollution by heavily taxing as of June the imports of several kinds of blending fuels which are being used by refiners to produce lower-quality fuels.
  • China allows imports of light cycle oil for use as a blending component for diesel or a petrochemical feedstock.
  • Refiners in South Korea, as well as international commodity and fuel traders, could see reduced demand from China because the new consumption tax on the imported blending fuels will raise the cost of buying those fuels.