Superfund tax unlikely to impact bunker sales in US ports – sources

The Superfund Excise tax that will be levied on all oil products, including bunkers, sold from 1 January is not likely to impact on bunker sales in US ports, sources say.

PHOTO: A pumpjack (oil derrick) in front of an oil refinery in Seminole, West Texas. Getty Images

“The tax is very minimal and can be easily absorbed by bunker buyers," a trader said. Most suppliers in the Houston area are not expecting any major impact on sales volumes, the trader added.

US President Joe Biden signed the Inflation Reduction Act (IRA) 2022 on 16 August. The IRA reimposes a Superfund Exercise tax on crude and petroleum product of $0.164/bbl from 1 January onwards.

A standard charge of $0.0039/gallon will be charged for all gasoline and distillate-based product sales including LSMGO from 1 January, a US-based bunker supplier said in a note.

By Nithin Chandran

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