LOS ANGELES, Sept. 1 -- China has banned new export contracts for oil products and has canceled value-added tax rebates on gasoline and naphtha exports for 4 months.
Five central government departments jointly released a circular on Aug. 31 saying the move aimed at guaranteeing domestic refined petroleum supply through yearend.
"In principle, no more new crude oil refining export contracts will be approved," the document said.
It granted some exceptions, including China Petroleum & Chemical Corp.'s jet fuel supply to Hong Kong and Macau, as well as its long-term contracts with Vietnam and Burma.
But the circular said their export volume "will be strictly controlled."
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