Shandong Seeks Further Fuel Oil Imports to Raise Refining Output

The government of China’s Shandong province, a hub for China’s independent refineries, has requested a further 3m mt of fuel oil import quotas from the central government in Beijing, according to Zawya news, referencing Reuters sources.

• The additional quotas, if approved, would raise import quotas to 19.2m mt and would offset the fall in crude quotas in 2023.
• Refiners want the additional fuel oil to maintain refinery runs as remaining crude import quotas are depleted, causing lower throughput. The fuel oil can be processed for products such as diesel and gasoline.
• Unlike crude import quotas, where refiners each receive a specific quantity, fuel oil permits are given to companies on a first-come first-serve basis after securing and registering import volumes with the government, traders told Zawya.