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Shanghai: China, the world's second-biggest energy consumer, recorded slower crude-oil imports last month as tax rebates failed to offset higher costs.
Imports climbed by three per cent to 14.57 million metric tonnes in June, or 3.55 million barrels a day, the Customs General Administration of China said yesterday. This compares with a gain of 25 per cent to 16.2 million tonnes in May.
The state refunded three-quarters of a value-added tax on imported crude between April and June to narrow refiners' losses for selling below-cost fuels in the domestic market as global oil prices hit records. The crude import bill expanded to $12.37 billion in June, the most this year.
"The VAT refund is meant to offset refining losses, and considering its size, the rebates won't help boost crude imports," said Qiu Xiaofeng, an analyst with China Merchants Securities.
Rebates
China Petroleum and Chemical Corp. in April received about seven billion yuan ($1 billion) in rebates, or 600 to 700 yuan for each ton of crude imported, a company official said. Oil prices in New York have more than doubled over the past year, rising to an all-time high of $145.85 a barrel on July 3.
"The import slowdown in June was also because of a high statistical base in May," said Gong Jinshuang, an analyst with China National Petroleum Corp.
Imports jumped in May as refiners boosted fuel production after China experienced its strongest earthquake in 58 years.
Between January and June, crude imports rose 11 per cent to 90.53 million tonnes, while the cost of shipments increased 86 per cent to $64.98 billion.
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