(Bloomberg) -- China issued the third and what’s likely to be the final batch of fuel export quota for this year, keeping the level very similar to 2023 in a sign it doesn’t want to encourage refiners to boost activity.
Seven refiners and traders received permission to export 8 million tons of gasoline, diesel and jet fuel in the tranche, according to industry consultant JLC and Mysteel OilChem. That takes the total issuance for the year to 41 million tons, compared with 40 million tons in 2023. The batch will likely be the last for the year, according to JLC.
The Ministry of Commerce, which oversees the allocations, didn’t immediately respond to a faxed request for comment.
The level of quota allocations signals that Beijing is serious about reducing emission levels and also that it’s keen to encourage consolidation in the refining industry. It comes as margins for producing diesel are dropping on weakening global demand, and as Chinese gasoline exports fall.
Separately, Beijing also issued 1 million tons of low-sulfur fuel oil export quota, taking the total for this year to 13 million tons, OilChem said. That’s around 2% lower than in 2023.
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