EASI published the report in China Watch, stating that the China-based oil and gas company, Sinopec, is finding it hard to meet the local demand for gasoline and petchem feedstock and is unable to produce enough of gasoline to feed its retail network.

As a result, the company is buying gasoline from other domestic suppliers to feed its retail network. Sinopec is expected to buy 300,000bpd of gasoline just like in 2012.

The purchase will prove beneficial to other Asian markets such as Singapore.

ESAI Energy Megan Wu said, "Sinopec refineries are looking for ways to diversify petchem feedstock, by using more LPG and adding PDH and CTO projects but in the short term, there continue to be structural challenges for Sinopec to produce enough gasoline."

The report also expects China’s gasoline demand to rise to almost 2.2 million bpd in 2013 and to meet the growing demand Sinopec will buy more gasoline from domestic suppliers, thereby proving bullish for the Singapore gasoline prices.