(Source: https://www.manifoldtimes.com/news/d/china-cpca-marine-fuel-industry-committee-provides-state-level-industry-update)

China: CPCA Marine Fuel Industry Committee provides state-level industry update

Singapore bunker publication Manifold Times attended the China Petroleum Circulation Association Marine Fuel Industry Committee (CPCA-MFC) meeting recently held at Zhoushan, China in June:

The Marine Fuel Industry Committee of China Petroleum Circulation Association (CPCA), a state-owned organisation under the China Ministry of Commerce responsible for the development of oil policies and legislation in China, held a general meeting at Zhoushan during June.

Liu Liguo, Deputy Secretary General of CPCA, Secretary General of the Vessel Oil Specialty Committee at CPCA and Deputy General Manager of domestic fuel oil trading at China state-owned bunkering firm Chimbusco, briefed delegates on the marine fuel committee’s latest developments.

Among updates were mention of development stages regarding the ‘Regulations for the Management of Ship Oil Supply Industry’; ‘Code of Practice for Bonded Fuel Supply Business of International Navigation Ships’; ‘Classification Rating Method for Ship Oil Supply Enterprises’; and establishment of a domestic benchmark system for marine fuel prices.

Regulations for the Management of Ship Oil Supply Industry

In his briefing, Liu noted the Marine Fuel Industry Committee of CPCA embarking to prepare the ‘Regulations for the Management of Ship Oil Supply Industry’ since 2015 due to a request from the Marketing Operation Department of the Ministry of Commerce.

The request for creating the national regulation was an effort by the government to improve the existing state of affairs of the industry, while standardising the operation behaviour of ship oil supply enterprises, and ensuring the sustainable and healthy development of the market, he said.

Specifically, it states the requirements such as qualifications, licenses, personnel, and enterprise management to operate a bunkering company, while formulating a grading evaluation management method for such enterprises.

Additionally, it recommends the use of mass flowmeter (MFMs) to meet measurement and quality requirements for bunkering operations.

“The entire declaration and review process of the standard was completed in September 18, and is now waiting for the Ministry of Commerce to officially release it,” he noted.

Code of Practice for Bonded Fuel Supply Business of International Navigation Ships

Liu further informed delegates that the ‘Code of Practice for Bonded Fuel Supply Business of International Navigation Ships’, completed in June 2018 and supported by the Zhoushan Port Comprehensive Bonded Zone Management Committee, has been submitted to the China Business Federation for review and CPCA is currently awaiting feedback.

Classification Rating Method for Ship Oil Supply Enterprises

The ‘Classification Rating Method for Ship Oil Supply Enterprises’, a formula for grading participating enterprises, has been completed on 17 May. The tool, which grades bunkering firms into first-class, second-level and third-level enterprises, seeks to standardised operations and encourage quality service.

Domestic benchmark system for marine fuel prices

An earlier trial which started since 28 August 2015 with an unnamed company to establish the average weekly price of domestic fuel oil for ships has been discontinued.

To replace, a similar project with Shandong Grand Information Co., Ltd. has been started in April 2019 and the company is expected to start producing valuations from August 2019.

“We have to introduce the ‘internal trade marine fuel’ valuation as soon as possible to establish a market price discovery mechanism and provide fair price support for both sides of the ship fuel supply and demand,” said Liu.

“The formation of the average weekly price is conducive to everyone studying the historical trend of marine fuel prices, so that shipowners can rely on the purchase price to determine the purchase price, and at the same time reduce the domestic vicious price competition and squeeze out the space of inferior oil.”


During the brief, Liu also mentioned CPCA undertaking a study trip to Singapore during the end of October 2018 to fully understand the development of its marine fuel industry.

He was grateful to the International Bunker Industry Association (IBIA) and Singapore-based marine fuel measurement engineering solutions company Metcore International which hosted CPCA during their stay at Singapore.

The field trip helped member companies, “broaden their horizons, open their minds, and explore Southeast Asian markets and international markets”, he stated.