Chinese authorities are looking to ease the domestic fuel glut and reducing pollution by heavily taxing as of June the imports of several kinds of blending fuels which are being used by refiners to produce lower-quality fuels. As of June 12, China will impose a consumption tax on imported light cycle oil (LCO), mixed aromatics, and diluted bitumen, seeking to close a tax loophole that refiners have so far used to import cheap blending fuels for making gasoline and other fuels. “A small number of companies have imported record amounts of these fuels and processed them into sub-quality fuels which were then funnelled into illicit distribution channels, threatening fair market play and also causing pollution,” the Chinese Ministry of Finance said in a statement, as carried by Reuters. Last month, China arrested several people in the southeastern province of Guangdong for an alleged illicit trade of LCO. China allows […]