Skip to content
Subscriber Only

China Private Refiners See Deep Cuts to Import Quota Amid Probe

  • Second batch of oil-buying allowances 35% less than in 2020
  • Reduction signals Beijing’s intention to reform sector: SCI99
The Yanshan oil refinery in Beijing, China.

The Yanshan oil refinery in Beijing, China.

Photographer: Nelson Ching/
Updated on

China’s private oil refiners will get 35% less in crude import quotas than they received last year amid a government crackdown on the sector.

The refiners were awarded a combined 35.24 million tons in crude oil import quotas in the second batch of issuance for 2021, down sharply from 53.88 million tons in the same tranche in 2020. The move will impact the pace of oil inflows into the so-called teapot sector, which accounts for a quarter of the nation’s processing capacity, on the back of rising scrutiny of their use of quotas.