China has instructed its largest oil refiners to temporarily halt exports of key fuels such as diesel and petrol as tensions in the Persian Gulf disrupt crude supply from one of the world’s most important energy-producing regions, Bloomberg reported.
Officials from the National Development and Reform Commission, China’s top economic planning body, recently held meetings with executives from major refining companies and verbally asked them to suspend shipments of refined products with immediate effect. The request also included stopping the signing of new export contracts and negotiating the cancellation of existing cargoes, people familiar with the matter told Bloomberg.
However, the directive allows certain exceptions. Jet fuel and bunker fuel stored in bonded facilities can still be exported. Supplies destined for Hong Kong and Macau are also not covered under the restriction.
Major refiners affected
China’s key state-owned and private refiners are among those impacted by the instruction. These include PetroChina Co., Sinopec, CNOOC Ltd., Sinochem Group, and private refiner Zhejiang Petrochemical Co., which regularly receive government-issued fuel export quotas.
Also Read | Two Indian sailors killed after oil tanker 'Starlight' hit in Gulf of Oman missile attack
Two Indian sailors killed after oil tanker 'Starlight' hit in Gulf of Oman missile attack
Although China has one of the world’s largest refining industries, most of its output is used to meet domestic demand. The country ranks third among Asian seaborne fuel exporters, behind South Korea and Singapore.
The move reflects wider concerns across Asia as the ongoing crisis in the Middle East disrupts energy flows from the Persian Gulf. Since US and Israeli strikes began over the weekend, shipments of oil and refined fuels from the region have slowed significantly.
Refiners across the region, including those in Japan, Indonesia and India, have also begun lowering operating rates and limiting exports to safeguard domestic supply.
Impact on upcoming shipments
The directive is expected to affect exports from April onwards. According to Reuters, most shipments scheduled for March have already been finalised and recalling cargoes at this stage would be difficult.
Also Read | Iranian drone hits airport in Azerbaijan's Nakhchivan as war spreads beyond Middle East
Industry estimates suggest combined exports of gasoline, diesel and jet fuel will likely remain near 3.8 million metric tons in March as refiners took advantage of strong margins in Asian markets.
Ship-tracking data from LSEG indicates that around 70,000 tons of jet fuel, 35,000 tons of diesel and another 35,000 tons of gasoline have already been shipped out this month.
China, the world’s largest oil importer, regulates fuel exports through a quota system designed to balance domestic supply and demand. The government’s initial fuel export quota for 2026 remains largely unchanged from last year at about 19 million tonnes.
