Key facts
- China has lifted restrictions on refined fuel exports for state-owned refiners and one private refiner.
- Refiners are planning to export approximately 3 million metric tons of gasoline, diesel, and jet fuel this month.
- The current export volume is comparable to shipments from the same period last year.
- The government had previously banned fuel exports amid supply concerns following the Middle East conflict.
- Restrictions were eased in April due to high domestic fuel stockpiles.
China has removed restrictions on refined fuel exports, allowing state-owned refiners and one private refiner to resume overseas shipments this month. According to sources cited by Reuters, Chinese refiners are planning to export approximately 3 million metric tons of gasoline, diesel fuel, and jet fuel.
This volume aligns with fuel exports from China seen a year ago. The private refiner, majority owned by Rongsheng Petrochemical, will be resuming exports after a four-month pause. State-owned refiners were permitted to sell fuels abroad even with the restrictions in place.
Previously, the Chinese government had banned all fuel exports following the eruption of the conflict in the Middle East, citing a worsening supply crunch. This move aimed to suspend new export contracts and cancel existing shipments as global fuel markets tightened. However, restrictions were eased in April as domestic fuel stockpiles surged, alleviating concerns about domestic supply security.
It remains to be seen whether these export restrictions will be extended beyond August.