Breaking! China Halts Fuel Exports
China has once again tightened the tap on fuel exports. Several refineries in the country are reported to have stopped shipping oil products to regions outside of Hong Kong and Macau until further instructions are received from Beijing.
Four sources familiar with the matter told Reuters on Thursday (1/10/2026). This policy has the potential to further constrict the global fuel supply, which is already under pressure due to war and production disruptions in several countries.
Beijing previously limited fuel exports in March after the outbreak of the United States-Israel war against Iran disrupted crude oil supplies from the Middle East to China, the world’s largest oil importer. However, these restrictions were temporarily eased during the period from July to September.
Now, the Chinese government is once again prioritising domestic energy supply security. The state-owned oil company, PetroChina, cancelled several shipments of petrol and aviation fuel on Wednesday that were previously scheduled for October.
Three sources stated that most of the shipping deals that have now been cancelled were only made within the last two weeks.
The four sources spoke to Reuters on condition of anonymity as they do not have the authority to speak to the media.
Beijing has long regulated monthly fuel export volumes to control domestic supply. However, as China enters a week-long national holiday this Thursday, the government has not yet granted permission to several large refineries to export fuel products to regions outside of Hong Kong and Macau throughout October.
This situation occurs while the global energy market is facing supply disruptions due to the war in the Middle East and Ukrainian attacks on oil refinery infrastructure in Russia.
China’s decision to withhold exports also has the potential to push fuel prices in several countries to new levels. This is because the international market is currently facing reduced supplies from several major producers simultaneously.
Beijing’s move comes less than a week after Chinese President Xi Jinping visited Washington and met with US President Donald Trump. During that meeting, Trump urged Xi to help stabilise the global fuel supply.
US Energy Secretary Chris Wright previously stated that the world has lost diesel supplies from both the Middle East and China. Washington also anticipates that European nations will soon announce additional diesel supplies.
Trade sources suggest that uncertainty regarding crude oil availability, combined with a decline in China’s domestic fuel stocks, has led Beijing to focus more on ensuring domestic supply adequacy.
“China’s priority is always domestic energy security, so even amidst a visible increase in crude oil purchases, this does not necessarily mean an increase in the export of oil products,” said June Goh, senior analyst at Sparta Commodities.