11JUN2019 - NEWS - China to give tax rebates to domestic LSFO bunker suppliers by 2020

China is expected to give refiners and blenders tax rebates for the supply of domestically produced low sulfur fuel oil, or LSFO, to bonded bunker fuel ports by 2020. The move will allow refiners and blenders to sell LSFO into China’s bonded bunker fuel market, and comes after state-owned Sinopec announced plans to sell LSFO to 10 domestic bonded bunker fuel ports and over 50 overseas bunkering ports with a 10 million mt/year of production capacity for the fuel. Domestic refineries and fuel producers have not been able to access this market due to high consumption and value-added taxes. With the tax rebates, domestic fuel oil will become competitive with imported barrels, potentially capping the country’s overall fuel oil imports. China is one of the biggest bunker fuel consumers and operator of one of the world’s largest shipping fleets. At the start of this year, China imposed a 0.5% sulfur limit on vessels sailing within 12 nautical miles along its entire coastline.

Published by Editor - www.Livebunkers.com at 11-Jun-2019 04:05:46 [UTC] , contact editor at editor@livebunkers.com