The Financial Times of the UK reported on the 28th, citing trade sources, that China is preparing to resume exports of aviation fuel, gasoline, and diesel. Large state-owned oil companies in China have already applied for export permits in order to ship starting in May.
According to The Financial Times and other foreign media, quoting a person familiar with China's export intentions, Beijing intends to primarily supply aviation fuel to Asian countries whose current jet fuel inventories are at dangerously low levels.
Bloomberg, citing sources familiar with the matter, also reported that several large state-owned oil enterprises, including Sinopec and PetroChina, have applied to regulators since last week for approval to export gasoline and diesel.
In the early stage of the Iran war, Beijing restricted fuel exports to ensure domestic supply. At that time, the closure of the Strait of Hormuz triggered panic among the world’s major crude oil and refined product importing countries, prompting China to prioritize domestic energy security to address potential supply risks.
However, after a few weeks, the situation changed. According to insiders, rising domestic fuel prices in China led to unexpectedly weak demand, partly due to the increased use of electric vehicles, which alleviated supply pressure. At the same time, export profit margins expanded significantly.
As the world’s largest crude oil importer, China has continuously strengthened its energy security strategy over the years, including diversifying supply sources, increasing domestic capacity investment, and establishing a reserve system. These measures have enabled it to show greater resilience than neighboring economies in the current supply shock. In addition, China swiftly tightened exports at the onset of the Middle East conflict to prioritize the domestic market, stabilizing energy consumption by local consumers and industries.