China Orders Refiners to Halt Diesel and Gasoline Exports to Prepare for Prolonged Iran Crisis

44% of China's Imported Oil Comes from the Middle East
"Iran Crisis Spurs Concerns Over Prolonged Disruption, Government Moves to Secure Domestic Supply"

AP Yonhap News

On March 5, Bloomberg News reported that the Chinese government has instructed its domestic refiners to halt exports of diesel and gasoline. This move is interpreted as an effort by China, which is highly dependent on Middle Eastern oil, to secure sufficient domestic supplies in preparation for a prolonged crisis involving Iran.

Quoting multiple sources familiar with the matter, Bloomberg News stated, "The National Development and Reform Commission, which oversees China's macroeconomic policy, met with the management of the country's largest refiners and verbally instructed them to temporarily suspend exports of refined petroleum products, with immediate effect," and added, "Refiners have been asked to stop signing new contracts and to negotiate cancellations for shipments that have already been agreed upon."

Chinese oil companies and authorities have not responded to inquiries about this matter. Bloomberg News noted that "state-owned energy companies such as PetroChina, China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), and Sinochem Group, as well as private refiner Zhejiang Petrochemical, regularly receive fuel export quotas from the Chinese government, but none of these companies responded to requests for comment." The National Development and Reform Commission also did not respond to inquiries.

The reason the Chinese government is moving to control refinery exports is largely attributed to its high dependence on energy imports from the Middle East and the need to prepare for a prolonged crisis involving Iran. Bloomberg News pointed out, "Amid escalating turmoil in the Middle East, this reflects a broader trend across Asia—where many countries are highly dependent on energy imports—of prioritizing domestic demand." The report further noted that other Asian countries, including India, Japan, and Indonesia, have also begun reducing refinery operating rates and halting exports.

According to Chinese customs statistics, as of 2024, approximately 75% of the oil consumed in China was imported, and about 44% of that imported oil came from the Middle East.

This content was produced with the assistance of AI translation services.