China levies consumption tax on biodiesel, kerosene imports
BEIJING (REUTERS) - China started levying a consumption tax on imported biodiesel and some types of kerosene from the start of the new year, the customs office said, in a move aimed at curbing imports of the fuels that have taken market share from state refiners.
The tax could create a supply gap for diesel in the world's second largest oil consumer that would force state refiners to scale back exports.
That would support Asian processing margins, which have been recently boosted by a refinery outage in Taiwan.
The government imposed a consumption tax of 0.8 yuan ($0.16) per litre on biodiesel, lamp kerosene and other kerosene grades, Chinese customs said on its website (www.customs.gov.cn).