June 16 (Bloomberg) -- China was a net importer of gasoline for the first time in May as rising oil costs discouraged refiners from processing crude into fuels, and in preparation for the August Olympic Games.

Gasoline imports reached 338,572 metric tons in May, the highest in at least 29 months, while exports were 160,000 tons, the Customs General Administration of China in Beijing said in an e-mailed statement today.

China, traditionally a supplier of gasoline to Asian countries, doubled imports from April's levels as crude oil costs prompted privately run refiners to cut fuel output to avoid losses. The nation is also building fuel stockpiles before the Beijing Games, said Gong Jinshuang, an oil analyst with China National Petroleum Corp.

``This is the first time that China, a major gasoline exporter in Asia, has become a net importer of the fuel,'' Gong said from the head office of the nation's largest oil company in Beijing. Ensuring market supply before the Olympics is crucial, Gong said.

China controls prices of oil products to limit their impact on inflation. Oil, which reached a record $139.12 a barrel in New York on June 6, has almost doubled in the past year. Those curbs on fuel are conducive to social stability, the China Securities Journal reported last week, citing Zhang Guobao, vice chairman of the National Development and Reform Commission.

Refining Volumes Drop

Crude oil processing volumes fell 1.1 percent to 27.78 million tons last month as the cost of the raw material increased, the Beijing-based China Mainland Marketing Research Co., which compiles data for the statistics bureau, said in a faxed statement today.

``China is likely to remain a net gasoline importer in the months leading to August,'' Yao Daming, an oil analyst with Guangdong Oil & Gas Association, said by telephone from the southern province, the nation's largest energy consuming market.

Diesel imports jumped 35 percent to 700,000 tons from April, more than triple purchases a year earlier, the customs data shows, as the nation's strongest earthquake in 58 years boosted demand for the fuel, used by trucks and power generators.

The 7.9-maginitude temblor on May 12 killed about 70,000 people, damaged power lines and hampered transportation of coal. Exports of diesel fell to 40,000 tons in May, compared with 60,000 tons in April and 120,000 tons a year earlier.

Coal Imports

China was a net coal importer last month as domestic demand from power producers increased. Imports of the fuel, which the country uses to generate about 80 percent of its electricity, rose 11 percent to 4.16 million tons. Exports were 3.91 million tons.

Only the U.S. consumes more energy than China.

The following is a table showing China's preliminary May oil export and import figures from the Beijing-based Customs General Administration. ==============================================================

Imports (Million Metric Tons) Yr-on-Yr Change

Crude oil 16.2 25% Gasoline ('000 tons) 338.527 No Imports Recorded Kerosene 0.53 27% Diesel 0.70 3,447% Other fuel oil 2.86 17.1%

Exports (Million Metric Tons)

Crude oil 0.15 -71.6% Gasoline 0.16 -67.4% Kerosene 0.46 26.1% Diesel 0.04 -66% Other fuel oil 0.81 366% ===============================================================

To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net

Last Updated: June 16, 2008 02:54 EDT