China targets Singapore bunkering
Chinese tax reform will trigger a gradual shift in the bunker fuel market away from Asia’s dominant hub
The timing of a package of Chinese tax reforms will have a greater impact on the future of the Asian bunker fuel market than the new International Maritime Organization (IMO) rules on sulphur in maritime fuel that came into effect on 1 January. China applies both consumer and value-added taxes to bunker fuels, even for bonded sales. This leads blenders to import about 90pc of the blendstocks, mostly from Singapore and Malaysia. “The tax is the big game changer,” says Dr Michal Meidan, director of the China Energy Programme at Oxford Institute for Energy Studies. Chinese refiners, she says, have been lobbying for tax relief for well over a year. The IMO has banned ships from using fuels with
Also in this section
17 May 2024
The latest drought crisis is passing, but longer-term solutions are in motion, explains Panama Canal Authority Administrator Ricaurte Vasquez Morales
16 May 2024
Flat oil growth in 2024 highlights mounting industry problems
15 May 2024
Five years ago, Uzbekistan turned to a private company called Saneg to reverse the fortunes of its oil industry. Results so far are encouraging, and according to CEO Tulkin Yusupov, further progress is on the way
13 May 2024
But optimism about island nation checked by competition around African upstream investment and history of false dawns