China to tax dirty oil flows from next month

Chinese regulators have been considering imposing a tax on imports of light-cycle oil. - Reuters

BEIJING (Bloomberg): China will start taxing imports of dirty fuels used to make lucrative but lower quality products from next month, citing pollution concerns and the need to promote fairness in the refining sector.

Imports of products such as light-cycle oil -- a low-quality fuel that’s blended into diesel or fuel oil -- will be subject to the consumption tax from June 12, according to a statement from the Ministry of Finance.

Other products that will incur the levy include mixed aromatics and diluted bitumen, the ministry said, and all will be taxed the same as shipments of naphtha or fuel oil.