China’s refinery output in 2021 rises 4.3% to a record high on strong fuel demand

China’s refinery output hits a record high in 2021, up 4.3% year-on-year, especially due to strong fuel demand in the first half of the year and as refineries increase. increased processing to fill the supply after the new heavy tax closed the loopholes in the fuel import mix. Total refinery throughput last year reached 703.55 million tones, or 14.07 million barrels per day (bpd), according to data from the National Bureau of Statistics on Monday, about 620,000 bpd higher. versus 2020. State-owned refineries ramped up processing to fill short-term diesel supply shortfalls. “With the commodity market going into surplus, state-owned refineries reduced printing while independent printing continued to decline in December,” said IHS Markit analyst Shi Fenglei. ,” analyst Shi Fenglei of IHS Markit. Output increased by nearly 11% year-on-year in the first half of 2021, as a rebound in car sales boosted gasoline consumption and a boom in domestic air travel made increased aviation fuel consumption.

The imposition of heavy taxes on the import of blended fuels such as light oil and bituminous blends has allowed the dominant state refiners to regain lost market share, previously eroded by fossil fuels. offer cheap mix. However, output fell in the third quarter as a rise in coronavirus cases and a sharp cut in fuel export quotas hit factory operations. Last year’s output growth rate was faster than the 410,000 bpd increase in 2020 as Beijing restricted processing at smaller independent refineries, particularly in the oil hub Shandong, for see a shift in production increases at major state refineries.

Monday’s data also showed that China’s crude oil production rose 2.4% year-on-year to 199 million tones, or 3.98 million bpd, as the industry struggled to sustain the 4 million bpd mark by developing land that is harder to compensate for the depletion of mature fields. Diesel output rose 8.2% to a record 205.3 billion cubic meters, with December output up 2.3% year-on-year amid peak demand in the heating season.