Chinese customs levies consumption tax on biodiesel imports

China has started levying a consumption tax on imported biodiesel and some types of kerosene, according to the country's customs office.

The move comes with the intention of curbing imports of the fuels that have taken market share from state refiners.

The government imposed a consumption tax of 0.8 yuan (€0.09) per litre on biodiesel, lamp kerosene and other kerosene grades, Chinese customs said on its website.

According to reports, the tax could create a supply gap for diesel in China, the world's second largest oil consumer, which would force state refiners to scale back exports. That would support Asian processing margins, which have been recently boosted by a refinery outage in Taiwan.

Diesel exports from China were pushed to record highs in 2013 due to a surge in imports, mostly by private companies. However, some shipments of the imported products allegedly did not meet China's requirements for biofuel components.