• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 3 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 11 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 15 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 14 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 21 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 20 hours Hong Kong protesters appeal to Trump for support.
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 10 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 11 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 14 hours Iran in the world market

PetroChina Pushes Subsidiaries To Export More Gasoline

oil storage

PetroChina started to give its subsidiaries subsidies to export gasoline each month as the domestic supply glut is worsening amid increased production, market sources said.

Domestic gasoline supply increased after Hengli Petrochemical saw its refining complex coming on stream at the end of 2018. Hengli and Zhejiang Petrochemical, which put its refining complex into production at the beginning of 2019, could produce much more gasoline than diesel on lower gasoline and diesel output ratios.

China's gasoline output was about 59.13 million mt in the first five months of 2019, up by 1.85 million mt or 3.23% from the same period last year; meanwhile, diesel output dropped by 6.59 million mt or 8.87% to 67.73 million mt.

Domestic gasoline demand growth, however, slowed down since 2018, when automobile sales posted negative increases and did not improve in 2019. The demand was also affected by the fast development of new energy vehicles.

During January-May 2019, China's gasoline exports amounted to 5.78 million mt, down by 7.5% year on year.

In May, domestic wholesale gasoline prices even fell below those of diesel.

The supply glut may further worsen after Zhejiang Petrochemical starts to supply gasoline in the second half of this year.

However, PetroChina's subsidiary refiners may be cautious in exporting gasoline, as export prices may be lower than their costs.

PetroChina continued to subsidize diesel exports but changed the subsidy period from quarterly to monthly.

By JLC International

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play