CHINA DATA: Pakistan increases gasoline imports from China in Jan-Feb

Pakistan imported 395,000 mt of gasoline from China over January-February, up 26.2% on the year, the customs data showed March 21, making it the only country to have received more fuels from China during that period.

In February alone, Pakistan received 190,000 mt of gasoline from China, up 7.2% on the year.

The increase in imports was in line with the country's growing demand. Pakistan's gasoline consumption growth is expected to be in near double-digits over the next three years due to rising auto sales, despite the push toward cleaner fuels, CEO of Pakistan State Oil Syed Muhammad Taha told S&P Global Commodity Insights in an interview.

Over the next two to three years, motor gasoline demand is expected to increase 8%-10% per annum owing to the sharp increase in economic activity, according to Taha.

In the first two months of the year, China's gasoline imports almost halved by 46.7% on the year to 1.885 million mt.

China is set to reduce its oil product exports by slashing the first batch of export quota allocations for gasoline, gasoil and jet by 56% on the year to 13 million mt for 2022, S&P Global reported earlier.

Looking ahead in March, China's gasoline outflows are more likely to fall as low as 520,000 mt amid tight export quotas, while gasoil exports are likely to recover slightly to over 500,000 mt as export margin becomes attractive, information collected by S&P Global showed.

Demand for gasoline is expected to rise within regional economies, such as Cambodia and South Korea, as the countries ease COVID-19 travel restrictions amid a pick up tourism demand.

Cambodia waived pre-entry tests, while South Korea will allow fully vaccinated travelers to enter without quarantine from April 1, according to local media.

Demand for gasoline is also expected to be supported by the upcoming Ramadan festivities in April, market sources said.

One market source estimated Indonesia would import 10 million barrels of gasoline in April, while Malaysia was estimated to import 1 million barrels in April.

Philippines the top gasoline receiver

China's gasoil outflows fell to multi-year lows of 197,000 mt in February, down further from 223,000 mt in January.

In February, the Philippines became the top receiver of China's gasoil at 56,000 mt.

Overall exports to the Philippines in the first two months, which amounted to 110,000 mt, however, were still down 85.9% from a year ago.

The decline came amid strict lockdown measures imposed by the Southeast Asian nation to curb the spread of COVID-19, which hurt consumption of gasoil.

Despite that, the Philippines was still the top destination for China's gasoil over January-February, and would continue to take up a large share of China's gasoil exports going forward as the country continues to ease border restrictions.

Meanwhile, South Africa received a rare cargo of 40,000 mt of gasoil in February, the first in 20 months.

Top destinations for China's gasoline exports ('000 mt)

Top destinations for China's gasoil exports ('000 mt)

Source: General Administration of Customs

Notes: *including exports to other countries