PetroChina Co. (PTR) executives announced on Friday, April 18, that the Chinese Ministry of Commerce has allocated export quotas for refined oil products to state-owned enterprises, including PetroChina and Sinopec (SNP). According to an unnamed executive, the government has significantly cut kerosene export quotas for both companies, while maintaining gasoline and diesel export limits at previous levels. The new quotas, which take immediate effect, cover all major refined oil products exported from China, including gasoline, diesel, kerosene, and naphtha.
The total export quota for 2008 amounts to 7.95 million tons, a decrease from 9 million tons in 2006. However, the exact figure for 2007 remains unclear. Specifically, the kerosene export quota for this year is set at 1.5 million tons, a sharp drop from the 4.48 million tons exported in 2007. In contrast, gasoline export quotas remain at 4.85 million tons, diesel at 400,000 tons, and naphtha at 1.2 million tons.
This adjustment reflects the government’s efforts to manage domestic supply and stabilize fuel prices amid rising global demand and fluctuating crude oil markets. Analysts suggest that the reduction in kerosene exports may be aimed at ensuring sufficient supply for local consumption, particularly in rural and remote areas where kerosene is still widely used. The move also signals a broader strategy to prioritize domestic energy security over export-driven growth in the refining sector.
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