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China may trim fuel oil imports amid 2025 tax hike, sources say

China's fuel oil imports are expected to drop in early 2025 following a hike in the product's import tax from Jan. 1, prompting some sellers to lower prices to boost demand, several trade sources familiar with the matter said.
China, the world's top oil importer, is expected to reduce its fuel oil imports in 2025 due to an upcoming tax hike on fuel oil, according to sources cited by Reuters. The tax on fuel oil, which is currently lower than that on other refined products like diesel and gasoline, will increase starting in 2025, making fuel oil less economically attractive for import. This adjustment in taxation aims to align fuel oil with other petroleum products, potentially impacting the profitability of importing and using fuel oil in China. The change could lead to a shift in the market dynamics, with importers possibly turning to alternative fuels or reducing overall import volumes. This policy shift is part of broader efforts by the Chinese government to manage energy consumption and environmental impact.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/energy/china-may-trim-fuel-oil-imports-amid-2025-tax-hike-sources-say-2025-01-08/ ]


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