ANALYSIS – China fuel import surge may vanish after Olympics

SINGAPORE (Reuters) – The surge in China’s gasoline and diesel imports this year has given an unexpected fillip to world oil prices, but that extra demand may vanish this autumn as Beijing unwinds a series of pre-Olympic measures.

To ensure its summer Olympics in August run smoothly, China has invoked national duty to spur its big oil companies to stock up fuel supplies, causing a short-term blip in imports that has turned it into a net gasoline importer for the first time.


They’ve also given refiners big rebates on imported crude and fuel supplies rather than risking social disharmony by raising ultra-low state-set domestic pump prices — a measure that might dampen demand from the world’s No. 2 consumer.

Both will likely change after the Olympic flame dies out, say analysts. And new refineries now under construction should again make China self-sufficient in both fuels.

Reuters