Ex-refinery price of jet is forecast to inch up in August, the first month with new pricing mechanism affective.
Based on Singapore jet prices during Jun 25-Jul 24, post-tax import cost of the fuel is about Yuan 7,768/mt, versus Yuan 7,640/mt of the current ex-refinery price, C1 calculated.
The National Development & Reform Commission, China's energy watchdog, announced earlier China would adjust jet ex-refinery price on the first day of each month from Aug 1. The ex-refinery price will be not higher than after-tax import cost, which is one the basis of FOB Singapore price (the average between the 25th day of the previous month and the 24th day of the current month), freight rates (US$2/bbl), import tariff, value-added tax and port charge (Yuan 50/mt).
