China’s Fuel Oil Tax Rebate Seeks to Boost Bunkering Clout: FGE

China’s tax rebate policy for fuel oil supplies is primarily aimed at making bunkering more competitive at Chinese ports, compared with other key hubs such as Singapore, according to a note from FGE dated Jan. 14.

• Government was concerned that the tax rebate would encourage very low-sulfur fuel oil exports, instead of providing supplies for bonded bunker storage, which would defeat the real purpose of the policy
• VLSFO from Chinese refineries will largely be sent to the domestic bunkering market and is unlikely to reach other Asian hubs
  
  • Exports to other countries will still incur hefty taxes, making economics unfavorable ...