China likely to adjust down fuel oil import duty to 1 pct

China likely to adjust down fuel oil import duty to 1 pct (www.chinamining.org)

   China is likely to adjust down the import duty on fuel oil from three percent to one percent in the near future, disclosed a well-informed source on July 2.

     Some local refineries have thus postponed part of deliveries scheduled for June to July to reduce the import cost. However, the customs authorities haven't received formal documents concerned, and sources with the Tariff Department under Ministry of Finance also stated that no relevant information has been received temporarily yet.

     An importer in Huangpu, Guangdong Province point out that it is possible for the government to cut the fuel oil tariff. On one hand, China's economic development is closely related to energy and in a bid to step up economic growth, the state has been encouraging import of energy; and on the other hand, the fuel oil import cost is very expensive, and the selling price is much lower than the import price, giving a heavy blow to the import.

     The import in south China has kept shrinking in the recent years, and the situation has become worse since 2008. The high cost is threatening the survival of importers, and it is time for the government to take an action, said the importer.

     According to analysis of C1 Energy, an information consulting body specialized in China's oil and gas field, if the fuel oil import duty falls from three percent to one percent, the import cost will drop moderately. Take Russia's M100 for example, the cost will drop 117 yuan/ton.