BEIJING – China’s state-owned refiners have begun applying for government permits that would allow them to resume fuel exports in May, citing plentiful domestic stockpiles.
Top Chinese oil majors including China Petrochemical Corp. and China National Petroleum have since last week sought a green light to ship gasoline and diesel, according to people familiar with the matter.
Inventories across China have swelled in the weeks following Beijing’s decision to curb exports in the early days of the Iran war, prioritising domestic supply at a time when the closure of the Strait of Hormuz was triggering panic among major importers of oil and refined products.
In the intervening weeks, however, higher domestic fuel prices have resulted in unexpectedly weak demand – in part because of electric vehicle use – relieving pressure on suppliers, said the people. Export margins, meanwhile, have risen sharply.
Gasoline and diesel inventories at state-owned refineries are at the highest level since 2025 and 2024 respectively, according to Mysteel OilChem data.
The government has yet to announce any change to permits following the request. China’s National Development and Reform Commission and the Ministry of Commerce did not immediately respond to faxes seeking comment.
As the world’s top oil importer, China has been focused on energy security for years – a strategy leaning on diverse suppliers, heavy investment in domestic production and reserves that has left it better positioned than neighboring economies going into a historic supply crisis.
It has also reacted quickly to protect its own consumers, curbing fuel exports even as importing nations like the Philippines and Vietnam grappled with acute shortages. BLOOMBERG
