China allows state refiners to export some fuels to Asian buyers

The shipments, which would likely head to Vietnam, Laos and other nations, have already been loaded

Published Thu, Apr 30, 2026 · 07:42 PM

With the Iran war stretching into a third month, vital supplies of crude, fuels, food and fertiliser remain stuck on the wrong side of the Strait of Hormuz. PHOTO: REUTERS

[BEIJING] China has given state-owned refiners the green light to export 500,000 tonnes of fuels to a handful of regular customers, signalling the country is effectively easing an earlier ban on shipments.

The one-off quota would allow petrol, diesel and jet-fuel cargoes to leave China next month, according to people with knowledge of the matter, providing relief to Asia’s emerging economies as the war in the Persian Gulf continues to cut off supply. They asked not to be named as the discussions are not public.

The shipments, which would likely head to Vietnam, Laos and other nations, have already been loaded, they added.

With the Iran war stretching into a third month, vital supplies of crude, fuels, food and fertiliser remain stuck on the wrong side of the Strait of Hormuz.

China – the world’s largest oil importer and a consumer of Middle East crude – has been quick to react, implementing fuel export curbs in order to shield local customers. Domestic stockpiles of fuels such as petrol and diesel have since climbed to seasonal highs.

Bloomberg News reported earlier this week that state oil firms had begun applying for government permits to resume fuel exports.

China’s state refiners seek to resume fuel exports after halt

Governments have already raided their policy toolkits by amping up subsidies to keep a lid on energy prices, restricting fuel use and ordering public officials to work from home.

How Asia-Pacific is fighting a fuel shock that could get worse

Analysts say destruction in the demand for oil due to the high prices may be the most likely factor to alleviate the current tight supply situation.

Global oil prices hit 4-year high on concern of US-Iran war escalation

Asia typically sources most of its diesel from plants within the region, which in turn rely on flows of crude from the Middle East for a substantial share of their input.

Iran war splits Asia’s diesel market into haves and have-nots

“We will keep trade open and predictable. Asean agreed to avoid restrictive trade measures, including export bans on essential goods,” Philippine Trade Secretary Cristina Roque said.

Asean vows to avoid export bans, share fuel as oil prices soar

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The National Development and Reform Commission, which oversees the allocation, did not respond to requests for comment. BLOOMBERG

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