• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 12 hours Evergrande is going Belly Up.
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 15 hours World’s Biggest Battery In California Overheats, Shuts Down
  • 4 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 hours Poland Expands LNG Powered Trucking and Fueling Stations
  • 2 days And now, hybrid electric locomotives...
  • 2 days Ozone layer destruction driving global warming
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day The coming Cyber Attack
  • 1 day Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 2 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days The Painful Death of Coal
Get Ready For The Energy Price Shock

Get Ready For The Energy Price Shock

Natural gas supply concerns continue…

Chinese Refiner Reportedly Dodged $2 Billion In Fuel Taxes

An independent Chinese refiner may have avoided paying some $2 billion in taxes by falsifying the kind of fuels it sells, Bloomberg has reported, citing a report in a Chinese outlet owned by state news agency the People’s Daily.

The company, Hengli Petrochemical Co., according to the report, sold gasoline and diesel under false names, as fuels that carry a lower tax burden, which resulted in it saving some 13 billion yuan, or about $2 billion.

If the report proves accurate, this could prompt a further government clampdown on independent refiners after taking action to curb their fuel production. The move was prompted by production, especially at independent refineries, rising faster than demand for fuels, creating a fuel glut and undermining refiners’ margins.

In order to reduce the glut, Beijing ordered state-owned refiners to stop trading their crude oil import quotas with independents and also reduced independents’ import quotas for the second half of the year, to 35.24 million tons, down 35 percent.

Independent Chinese refiners have been a major driver behind the country’s surging oil imports in the past couple of years, enjoying a relatively loose regulatory environment. This, however, seems to be changing, with teapots recently becoming the target of tax-evasion allegations and claims of environmental law violations.

Independent refiners account for a quarter of China’s refining capacity, which last month hit a new high in run rates, at 14.8 million bpd. This, however, was lower than the average daily run rates for the first half of the year, which stood at 15.13 million bpd, according to the latest data from the Chinese customs authority.

These rates will likely fall in the second half, as could imports, because of the government clampdown on teapots, which has combined with higher oil prices to depress demand, Reuters reported earlier this month.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News