Beijing has given the green light to a tax waiver on exports of very low sulphur fuel oil (VLSFO) with Chinese refiners keen to take a significant global market share of the new fuel type.
Zhoushan, off Ningbo, is trying to position itself as a bunkering hub to rival Asia’s dominant Singapore with a host of bunker-related companies setting up in the area over the past two years.
Reuters reported on Friday that Chinese refiners will supply the new VLSFO to bonded storages along the country’s coast, and from there they will be retailed to ships by 12 licensed bunker dealers. Supplies to bonded tanks are considered as exports and will be managed by a quota system.
