MOFCOM Adjusted Refined Oil Export Quotas

MOFCOM Adjusted Refined Oil Export Quotas

The Ministry of Commerce adjusted the refined oil export quotas of PetroChina and Sinochem recently, some state-owned traders said. Some of the gasoline export quotas were changed to diesel and jet fuel export quotas. The 700,000mt of the gasoline export quota of PetroChina was adjusted to 400,000mt diesel export quota and 300,000mt jet fuel export quota. The 115,000mt of the gasoline export quota of Sinochem was adjusted to 110,000mt diesel quota and a small amount of other products.

After the adjustment, for the first half of 2019, the refined oil export quotas of state-owned companies are shown in the following table.

PetroChina’s gasoline export volume was lower than expected in 2019, mainly because of the oversupply in Singapore. But China’s gasoline market may see tight supply in the second quarter of the year, according to experience, and several large refineries under PetroChina are scheduled to shut down their units for maintenance in the second quarter. Therefore, PetroChina will raise its gasoline supply for the domestic market. But Hengli Petrochemical has started stable production, and it will become an important gasoline supplier in China. Therefore, actually, the gasoline market is likely to continue suffering oversupply in the second quarter of this year. At present, some petrol stations in North China are heard to plan a new price war.

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