China’s diesel, gasoline exports surge in Dec on quotas, weak demand

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LONDON — China’s diesel exports rose

for a second month in December, while gasoline exports climbed

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for a third month, as the country’s COVID outbreak limited

domestic fuel demand, and refiners utilized their expanded

yearly export quotas.

China exported 2.79 million tonnes of diesel in December,

representing a 32.8% increase on November’s 2.10 million tonnes,

data from the General Administration of Customs showed on

Wednesday. That is the highest since March 2021.

Total diesel exports for the year amounted to 10.92 million

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tonnes, versus 17.21 million tonnes for 2021.

Gasoline exports were 1.91 million tonnes in December, the

highest since October 2020, and up from 1.49 million tonnes the

month before.

Total gasoline exports for 2022 stood at 12.56 million

tonnes, versus 14.54 million tonnes in 2021.

Refiners continue to offload inventory abroad to make full

use of their yearly export quotas after a year in which COVID-19

restrictions have choked domestic fuel demand.

Though domestic travel initially picked up after

restrictions were abruptly eased at the end of November, the

subsequent nationwide surge in COVID cases in December dampened

domestic consumer and industrial fuel demand as people stayed

home to avoid infection.

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To stimulate the pandemic-battered economy, the government

issued an additional 13.25 million tonnes of export quota for

diesel, gasoline and jet fuel, taking the total 2022 quota to

37.25 million tonnes, even with 2021’s quota.

The government recently announced its first refined product

export quota for 2023 at around 19 million tonnes as it seeks to

further help demand.

However, road traffic volumes in some large cities are

appearing to increase. Domestic consumption of refined products,

such as petrol and kerosene, is expected to pick up through the

Lunar New Year, which falls on Jan. 21, with millions of Chinese

expected to travel for the week-long holiday.

China’s liquefied natural gas (LNG) imports posted their

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first major annual decline since the country began importing it

in 2006. Total LNG imports in 2022 amounted to 63.44 million

tonnes – down 19.5% on 2021’s figures.

December imports came in at 6.6 million tonnes, up only

marginally on November and down 13% on the year.

The drop, predicted by industry analysts, comes after a year

in which pandemic restrictions curtailed manufacturing demand

for the fuel. Global LNG prices, though lower in recent months,

were high through much of 2022 due to the war in Ukraine,

leading to a further contraction in demand from Chinese

industrial consumers.

Below are the details with volumes in million tonnes.

Exports Dec y/y % change 2022 y/y % change

Gasoline 1.91 +103.3% 12.56 -13.6%

Diesel 2.79 +757.9% 10.92 -36.5%

Jet fuel 1.72 +190.8% 10.90 +27.4%

Imports Dec y/y % change 2022 y/y % change

LNG 6.60 -13.0% 63.44 -19.5%

Piped gas 3.68 -9.7% 45.81 +7.8%

(Reporting by Andrew Hayley; Editing by Christian Schmollinger

and Emelia Sithole-Matarise)