OREANDA-NEWS. March 10, 2011. China's refiners slashed exports of gasoil in January, to their lowest level since November 2008, as most companies stockpiled the fuel to prevent another shortage ahead of the Chinese New Year, figures released late last week by China Customs Statistics showed. In January, gasoil exports were only 95,886 mt, which was a drop of 79.31% year on year, or 44.19% down from levels in December.

This is the lowest level since November 2008, when exports were at a low of 28,478 mt.

China suffered a severe shortage of diesel during the last quarter of 2010 as local enterprises used it to generate electricity to keep operating during periods of power rationing. Some local governments in China switched off electricity supplies as part of commitments made to Beijing on energy conservation and emission cuts.

China's refineries operated at maximum capacity in January to ensure ample supplies of refined products to drought-hit areas and in anticipation of the peak diesel demand period during Chinese New Year in February, according to an earlier report by the official Xinhua news agency.

Diesel inventories rose 25% month on month in January, returning to inventory levels recorded in June 2010, according to Xinhua.

Separately, gasoil imports saw a jump of 81.19% year on year to 183,298 mt in January. Still, the volume was 60.22% less than imports in December.

State oil companies turned to the international markets to purchase gasoil due to the shortage of the fuel in the local market.