China Eases Some Refined Fuel Export Restrictions, Allowing Gasoline and Diesel Sales to More Countries Starting July
Claire Weston
China has eased some refined-fuel export restrictions over the past week, letting state-owned refiners ship gasoline and diesel to a wider set of countries from July — the first partial rollback since a blanket export halt in March, though total volumes must still fit within government quotas.
What exactly has been loosened?
Previously only a handful of energy-short neighbours were exempt. Now the list of eligible destination countries has widened.
The new policy applies to cargoes loaded from July onward, covering gasoline and diesel.
Total export volumes must still stay within government-set quotas. This means → the tap is open a bit wider, but Beijing still controls the main valve.
Why did China halt exports in March?
In early March the U.S. and Israel struck Iran, and Middle East tensions spiked overnight.
China's Ministry of Commerce told major refiners to suspend diesel and gasoline exports, prioritising domestic fuel security.
In plain terms = a war broke out near the oil routes, so China kept its own fuel at home first.
Why ease up now?
The key variable: shipping through the Strait of Hormuz — the narrow waterway carrying roughly a fifth of the world's seaborne oil — has improved.
After Washington and Tehran signed an interim peace deal in mid-June, tanker traffic through the strait picked up and empty vessels began entering the Persian Gulf to load fresh cargoes.
This means → the worst-case Middle East supply disruption is receding, giving China the confidence to release some exports again.
Will Asia's neighbours get relief?
The Middle East disruption plus China's export freeze left multiple Asian countries facing fuel shortages, price spikes, petrol-station queues, and flight cancellations.
Chinese refined fuel flowing out again could bring additional supply to those markets.
But regional refiners such as those in South Korea are also ramping up exports — market participants see a push to grab market share before Middle East supply fully recovers. This means → the real impact of China's easing hinges on how fast quota headroom is actually released.
Content is for reference only, not financial advice.