Chinese bunker demand could be about to rise significantly. Image Credit: File Image / Pixabay
Oil exporters in China have asked the country's Ministry of Commerce for a combined total of 24 million mt of fuel oil export quotas after the tax rebate on the product was announced, according to price reporting agency S&P Global Platts.
The exporters met with the ministry on Sunday, Platts reported Wednesday, citing sources with knowledge of the matter.
As of 1 February China will introduce a value added tax rebate on fuel oil, incentivising local producers to produce bunkers for international ships calling at Chinese ports.
The change is likely to shift bunker demand to Chinese ports and reduce the need for the country's bunker suppliers to rely on imported product.
China's refineries have the capacity to produce 18.5 million mt/year of very low sulfur fuel oil, Platts said.