Beijing: China’s gasoline exports plummeted to their lowest point since July 2015 in April, according to customs data and Reuters records, reflecting a surge in domestic travel and fuel consumption as the economy rebounds.
April saw gasoline exports plummet to 400,000 metric tons, a staggering 50.8% decline from the previous year, as revealed by the General Administration of Customs. This marked a sharp 65% drop from March’s figures, which stood at 1.15 million tons.
Shiqing Xia, an oils and chemicals consultant at Wood Mackenzie, attributes this decline to a rising preference for short-distance travel among tourists, leading to increased car trips and subsequently bolstering domestic gasoline demand.
Analysts anticipate a continued low level of gasoline exports in May, with domestic demand projected to surge by 3-6% year-on-year, driven by heightened travel activity during China’s Labour Day holiday. Despite heavy rainfall limiting travel growth in southern China, domestic travel during the holiday period surged by 28% compared to pre-pandemic levels in 2019, reports Jianan Sun, China energy market analyst at Energy Aspects.
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While diesel exports in April stood at 760,000 tons, a 46% decrease from March, they still showcased a notable 21.8% increase from the previous year. However, traders anticipate a further decline in diesel exports in May, with state refiners nearing exhaustion of their quotas.
The refining sector, particularly Sinopec and PetroChina, are contemplating scaling back refined fuel output in June due to squeezed refining profits in Asia amidst excess diesel supply.
Despite maintenance shutdowns during the low-demand season in the second quarter, refining margins in Singapore dropped below $4 a barrel in April, down from nearly $6 in March, according to LSEG data.
In contrast, jet fuel exports in April surged by 90.4% year-on-year, reaching 1.59 million metric tons. However, this marked a decline from March’s figures, which stood at 1.98 million tons. International flights doubled compared to the previous year, although they remained 30% lower than April 2019 levels.
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The buoyancy in jet fuel exports is attributed to robust sales margins outside mainland China, a trend expected to persist in May and June.
Meanwhile, April LNG imports increased by 31.5% year-on-year, reaching 6.22 million tons, driven partly by attractive spot prices. However, this figure represents a decline from March’s imports, which stood at 6.65 million tons.
