China: fuel oil rebates. File image/Pixabay.
Domestic producers of low sulfur fuel oil will get a tax rebate on supplies to bonded bunker fuel ports.
The move should make domestic product more competitive with imported product.
China's bunker fuel demand is around 12 milion metric tonnes a year most of which is met via fuel oil imports into China's bonded zones, according to price-reporting agency SP Global Platts.
The report cited a Chinese oil company official who said that the government is very supportive of the idea. The change could happen later this year.