China sets fuel oil import limit at 16.2 million mt for 2022, unchanged from 2021

China has set fuel oil import limit at 16.2 million mt for 2022, unchanged from 2021, according to a policy release by the Ministry of Commerce dated Dec. 23.

The limit is fixed stable despite the number of companies that are allowed to import in 2022 increased to 117 from 61 in 2021, the release showed.

Each of the companies are allowed to apply for less than 300,000 mt and more than 50,000 mt of fuel oil import quota for 2022, the ministry said.

"The volume should be sufficient for 2022 as we don't expect to see a significant increase in fuel oil imports next year," a Singapore-based analyst said.

"Feedstock demand for fuel oil from independent refineries will increase in 2022 due to tight control in crude oil imports," a Beijing-based analyst said.

But the rise can be more or less offset by a decline in bunker fuel oil imports as domestic LSFO production rise, the analyst added.

China imported 12.78 million mt of fuel oil in January-November 2021, up 4.88% from the same period of last year, data from General Administration of Customs showed.