WANA (Mar 12) – Reports indicate that China has instructed its largest oil refineries to suspend exports of gasoline and diesel. The unprecedented move comes as military tensions escalate in the Middle East and key crude oil transport routes to China face disruption.

 

According to sources familiar with the matter, Chinese authorities have ordered major refineries to temporarily halt overseas shipments of refined fuels. Officials from the National Development and Reform Commission (NDRC)—China’s top economic planning body—reportedly issued the directive during a meeting with refinery executives, calling for the immediate suspension of export cargoes.

 

Details of the Export Suspension

Sources say refineries were instructed not to sign any new export contracts and to negotiate with buyers to cancel shipments that had already been agreed upon.

 

The suspension reportedly applies to major state-owned energy companies, including PetroChina, Sinopec, China National Offshore Oil Corporation, and Sinochem, as well as the private refinery Zhejiang Petrochemical, which typically receive government fuel export quotas.

 

However, the restrictions reportedly do not apply to aviation fuel (jet fuel) or ship fuel (bunker fuel) stored in bonded facilities under customs supervision. Shipments to Hong Kong and Macau are also said to be exempt.

 

Concerns Over Oil Supply

The main reason behind the decision is concern over potential disruptions to crude oil supplies due to the conflict in the Middle East. Recent tensions and attacks in the Persian Gulf region have complicated maritime traffic through the Strait of Hormuz, one of the world’s most critical oil transit routes.

 

Data from energy analytics firm Kpler shows that in 2025, the Middle East accounted for about 57% of China’s seaborne crude oil imports. With supply routes from the Gulf effectively under threat, Beijing appears to be prioritizing domestic stockpiling and energy security.

 

China remains the world’s largest crude oil importer. Despite efforts to diversify energy sources, roughly half of its imported oil still comes from the Gulf region.

 

Market Reaction and Outlook

The decision has already affected regional energy markets. Reports suggest refining margins for diesel have surged to $49 per barrel, while kerosene margins have exceeded $55 per barrel, the highest levels in three years.

 

Within China, wholesale fuel prices have also risen. Diesel prices increased 13.5% between late February and early March, reaching 7,276 yuan per ton.

 

Analysts believe shipments scheduled for March may still proceed as planned, but the main impact of reduced Chinese exports is expected to be felt in international markets starting in April.

 

In response to the reports, a spokesperson for China’s Foreign Ministry said during a press conference that they were not aware of the matter and declined to confirm it. None of China’s major refining companies have publicly commented on the reports.

 

China’s move comes as other energy-import-dependent Asian countries—including Japan, Indonesia, and India—are also adjusting their refining operations and export strategies amid the worsening Middle East crisis.