China International United Petroleum & Chemical Corp., the nation s biggest oil trader, may halt diesel exports this month to build inventories, said two company officials with knowledge of the plan.
Unipec, as China International is known, has been cutting exports to meet domestic demand, said the officials, who declined to be identified because of company rules. The trading company reduced diesel exports to 70,000 tons in March from 80,000 tons in February.
Domestic supplies have fallen after some refineries cut processing because of higher costs and sellers hoarded the fuel amid expectations the government will approve a price increase.
China is expected to raise gasoline and diesel prices after the gain in global crude oil exceeded 4 percent, the trigger point for an adjustment. The last increase was in February.
China s diesel stockpiles surged 28 percent in February after a 25 percent increase in January, according to data from the official Xinhua News Agency.
