China’s gasoline and diesel exports soared in August

  • China exported 97.4% more gasoline in August 2022 than the previous year.
  • This huge increase was largely due to a new batch of fuel export quotas amid weak domestic demand.
  • China’s diesel exports also rose significantly in August, up almost 52% from a year earlier.

China exported 1.12 million tonnes of gasoline last month, a whopping 97.4% increase over the previous year, according to customs data cited by Reuters.

The increase came on the back of a new batch of fuel export quotas amid tepid domestic demand. The new quotas also pushed diesel exports much higher, up nearly 52% from August 2021 to 830,000 tonnes.

The new quotas, issued in June and July, are expected to significantly boost fuel exports in August, with total gasoline, diesel and jet fuel exports expected to reach between 2.4 and 2.6 million tonnes, according to a previous report. from Reuters.

However, fuel exports for the full year are expected to be much lower than in 2021 due to the reduced size of export quotas as Beijing tackles domestic fuel inflation. In fact, fuel exports in 2022 are expected to be 40% lower than fuel exports in 2021.

Data for the first eight months of the year shows a drop of more than 30% in gasoline exports and a 78.3% drop in diesel fuel exports. Kerosene exports increased by 4.4% between January and August.

The decline in diesel fuel exports could be a source of concern in global fuel markets, as global diesel supply has tightened significantly. It is set to tighten further from next February when an EU embargo on Russian fuels comes into effect.

China is the only country in the world with the refining capacity needed to dramatically increase diesel production, but export quotas are tightly controlled by Beijing, limiting its ability to use that capacity to ease the global shortage. of diesel.

“China also has the power to change the fate of the global diesel market, if it loosens the brakes on streamlining its domestic refining industry,” Vortexa chief economist David Wech wrote in late August.

By Charles Kennedy for

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