China Thursday announced a new import policy to replace existing
import quotas for state-traded oil products next year as part of
its commitment to the World Trade Organization.
But the quota lift is not likely to send shockwaves in the
market as the government will impose internal controls over
imported products by requiring importers to register their count,
traders said.
They also said the price of oil products, most of which are for
fuel oil, are likely to rise by 15 to 20 percent next year to feed
the increasing demand.
The Ministry of
Commerce said it will scrap the import quota for primary
refined oil products including gasoline, gas oil, kerosene, naphtha
and fuel oil, starting January 1.
Other than fuel oil, importers have to import oil products via
four state-designated oil firms -- Chinaoil, Unipec, Sinochem Corp
and Zhuhai Zhenrong Corp.
Meanwhile, the ministry also lifted import quotas for other
products including rubber, tyres and auto parts.
"Although the import quota has been lifted, volume control still
exists, as the government does not want to see the market in
disorder,"said a manager from a state oil-trading company.
"But fuel oil imports are expected to rise next year to satisfy
the market demand surge,"said the manager.
China's oil product imports soared 49.3 percent year-on-year to
23.74 million tons in the first 10 months.
Fuel oil, which accounts for the bulk of imports, reached 20.1
million tons, exceeding full-year imports by 22 percent.
Earlier in July, the government decided to issue a total of 6.1
million tons of import quotas for all oil products in 2004 to
non-state firms, of which 5.6 million tons are for fuel oil and the
remainder mostly for gas oil.
(China Daily December 12, 2003)