Chinese May transport fuel exports fall 22%, led by diesel collapse

London, (Quantum Commodity Intelligence) – Chinese exports of the three main transport fuels fell sharply in May compared to a month earlier, despite crude throughput rising.

Exports of gasoline, diesel and jet fuel totalled 3.8 million mt in May, down 1 million mt, or 38%, on a month earlier, Chinese customs statistics showed Friday.

Diesel exports saw the biggest collapse, falling 1 million mt (7.45 million barrels) on the month to 1.68 million mt.

Monthly exports of diesel so far this year have totalled 2.2 million mt, according to the figures.

Gasoline exports rose 5% to 1.55 million mt in May, while jet exports were 570,000 mt.

Both exports were broadly in line with monthly averages so far this year.

With refinery throughput higher in May and crude production lower compared to April, Chinese crude stocks likely fell for the second month in May.

Tax changes in China that came into effect this week make imports of light cycle oil more expensive.

Light cycle oil is a gasoil/diesel alternative used in agriculture, mining and the industrial sector.

Analytics and tracking company Vortexa said in a report earlier this week, "effective 12 June, a $0.24/b/litre (or 1.52 yuan/litre) consumption tax levied on mixed aromatics and LCO imports is expected to significantly reduce import volumes of these blend components, tightening domestic gasoline and diesel/gasoil supplies."