SINGAPORE: China Aviation Oil (Singapore) is seeking up to 1.2 million barrels of jet fuel for October to November delivery, resuming its usual volumes after cutting it to half in a previous tender, industry sources said.
The company had halved its jet fuel requirements last month due to a tax policy change which went into effect in August.
China removed a value-added tax exemption on imported jet fuel used by Chinese airlines on their international flights, making imports more expensive than buying from domestic refiners, traders said.
In its latest tender, CAO is seeking four cargoes of 240,000 to 300,000 barrels each of jet fuel for Oct. 21 to 31, Nov. 1 to 10, Nov. 11 to 20 and Nov. 21 to 30 delivery.
The cargoes are to be loaded from either South Korea, Japan, Taiwan, Singapore, Malaysia or Thailand, a tender document showed. The tender closes on Sept. 27 and is valid until Sept. 30.
It was not immediately clear why CAO resumed its normal requirement for jet fuel or whether it will continue to seek such volumes.
The company is Asia's top jet fuel buyer and any reduction or increase in its usual spot purchases could impact the Asian jet fuel market, traders said.
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