【Iran Crisis】China reportedly informs major refining companies to suspend diesel and gasoline exports, halt new contracts, and cancel existing delivery agreements

SocialAnxietyStaker · 2026-03-05T04:40:18+00:00

The Middle East conflict affects crude oil transportation. The Chinese government has notified refining companies to temporarily suspend diesel and gasoline exports to ensure domestic demand. Relevant companies are required to halt new contracts and negotiate the cancellation of existing agreements. Most oil production is used domestically. As the Middle East situation worsens, these measures reflect China's strategy of prioritizing the protection of its internal market.

SocialAnxietyStaker

2026-03-05 04:40:18

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Middle Eastern conflict disrupts crude oil transportation. Bloomberg citing sources reveals that the Chinese government has notified the country’s largest refining companies to temporarily halt diesel and gasoline exports. Reports indicate that officials from the National Development and Reform Commission met with senior executives of refining companies and verbally demanded an immediate suspension of refined oil exports. Refining companies are instructed to stop signing new contracts and to negotiate the cancellation of existing shipping agreements.

Sources add that kerosene stored in bonded warehouses, marine fuel oils, and fuels shipped to Hong Kong and Macau are not subject to these restrictions.

The report states that China National Petroleum Corporation (00857), China National Offshore Oil Corporation (00883), Sinopec (00386), China Chemical Corporation, and Zhejiang Petroleum & Chemical regularly obtain fuel export quotas from the government. These companies have not responded to the incident.

China has a large refining industry, but most of its output is used to meet domestic demand. As the Middle East crisis intensifies, these restrictions reflect China’s effort to prioritize domestic needs.

Since the weekend attacks by the US and Israel on the Persian Gulf, almost no oil or fuel has been shipped from the Persian Gulf. Refineries in Japan, Indonesia, and India have begun reducing operating rates and suspending exports.

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