China ‘teapot’ oil group urges compliance on quotas, tax

6 Jun 2017   China

An alliance of more than 20 of China’s independent oil refineries has urged its members to strictly adhere to government rules on oil quotas and taxes, according to a group statement seen by Reuters on Tuesday. The mostly privately run refineries, known as “teapots”, have upended China’s oil market after Beijing began allowing them to import crude in late 2015 in an effort to shake up a market dominated by state-owned majors. However, state firms like Sinopec and PetroChina have repeatedly accused the independents of undercutting their larger rivals by evading or under-paying consumption taxes for gasoline and diesel. Beijing in 2016 dispatched inspection teams to oversee the teapots’ tax records. The independents are also facing shifting government policies on oil quotas at a time when domestic oil demand […]

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