China Gasoline Stockpiles Extend Record Amid Rise of Hybrid Cars

Jul 24, 2014 2:45 am ET

July 24 (Bloomberg) -- China’s gasoline inventories rose to a record high for a third month in June as an expanding fleet of new-energy vehicles limited demand for conventional supplies in the world’s second-largest oil consumer.

Gasoline stockpiles increased 2.7 percent from May, China Oil, Gas & Petrochemicals, a newsletter published by the official Xinhua News Agency, said today. Supplies expanded to an estimated 7.81 million metric tons, the highest level since January 2010, when Bloomberg started compiling the data. Kerosene inventories also climbed to a record 1.88 million tons, up about 4.3 percent from a month earlier.

China will waive a 10 percent tax on purchases of new- energy autos, the local term for electric cars, plug-in hybrids and fuel-cell vehicles, starting Sept. 1 to the end of 2017, the government said on July 9. The nation’s gasoline supply was “sufficient” last month, according to OGP. Production of the motor fuel expanded to 9.24 million tons in June, the second- highest level on record, data from the National Bureau of Statistics show.

Diesel stockpiles dropped 2.2 percent last month while commercially held crude supplies were down 2.3 percent, according to OGP. It stopped reporting volumes in July 2010.