China has instructed domestic oil refiners to stop signing new fuel export contracts and attempt to cancel previously agreed shipments as the ongoing war involving Iran tightens global crude supply, according to industry sources on Thursday.
The directive is aimed at protecting domestic fuel availability as disruptions in Middle East oil flows push up crude prices and squeeze refinery operations.
The guidance reportedly excludes jet fuel supplied for international aviation, bonded bunkering and fuel deliveries to Hong Kong and Macau.
While China’s National Development and Reform Commission has not officially commented, the move signals Beijing’s effort to manage domestic energy security amid rising global tensions.
The impact on exports is expected to become visible from April, as most March cargoes have already been finalised and are difficult to recall.
Industry estimates suggest March exports of gasoline, diesel and jet fuel will remain around 3.8 million metric tons, supported by strong refining margins across Asia.
The policy could tighten regional fuel supply further, pushing refining profits higher as the Middle East conflict disrupts crude shipments.
At the same time, domestic Chinese diesel and gasoline prices have surged in recent days, prompting wholesalers to stockpile fuel in anticipation of further price increases.