China Issues 2nd Batch Fuel Export Quotas

China has issued 28 million tons of refined fuel export quotas in the second allotment for this year, little changed from the first batch of 27.99 million tons issued last December, according to four sources with knowledge of the matter.
The quotas were released last week to five state oil companies, PetroChina, Sinopec, China National Offshore Oil Corp, Sinochem Group and China National Aviation Fuel Corp, the sources said, Reuters reported.
The new quotas, of mostly gasoline, diesel and aviation fuel, come as domestic fuel consumption is recovering from a plunge in demand caused by the novel coronavirus, while the Asian market is awash with unwanted transportation fuels.
Still, no private refiner was granted quotas, despite Beijing’s pledge last December to give wider market access to the private sector. Beijing normally issues three or more batches of quotas during a year. A total of 56 million tons were issued for 2019.
The new issue consists of 24.6 million tons under the general trade category and 3.4 million tons under the tolling system. Companies receive a tax refund for general trade transactions once exports are completed, while taxes are waived under tolling arrangements.