Establishment refiners are fighting back in China
China’s independent refiners reel from tax blow
Preferred feedstocks are now subject to levies, as establishment refiners use political clout to bite back
China’s independent refiners have been a staple of Asia’s trading scene ever since Beijing liberalised crude imports in 2015. Having built their reputations in the mid-late 2000s as important sources of marginal supply—state-controlled refiners having failed to keep up with domestic product demand—China’s independents have grown in complexity, sophistication and profitability. But a new consumption tax is now targeting light cycle oil (LCO), mixed aromatics and diluted bitumen, all feedstocks used by the independents. What are the implications for trade flows? New force Erroneously called ‘teapots’ by some, China’s independents have built sophisticated trading arms over the years, emerging a
Also in this section
10 March 2026
From Venezuela to Hormuz, the US—backed by the most powerful military force ever assembled—is redrawing not only oil and gas flows but also the global balance of energy power
10 March 2026
By shutting the Strait of Hormuz, Iran has cut exports of distillate-rich Middle Eastern crude, jet fuel and diesel, and is holding the energy market hostage
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
