Thursday 05 March 2026 – 11:08 AM
The Chinese government issued immediate verbal instructions to Akbar Oil refining companies in the countryincluding “Sinopec” and “PetroChina”, temporarily suspending diesel and gasoline exports.
This precautionary decision came after a meeting with the National Development and Reform Commission, as a result of the escalation of the conflict in the Arabian Gulf, which caused an almost complete cessation of oil flows from the region, threatening the supplies of China, which depends on the Gulf to secure about half of its oil imports, according to Bloomberg.
The government directives included halting the signing of any new export contracts and negotiating the cancellation of previously agreed shipments, with the exception of aircraft and ship fuel and supplies destined for Hong Kong and Macau. This step reflects Beijing’s efforts to give the highest priority to securing domestic demand, in light of the confusion in global supply chains and the forced refineries in Japan, India and Indonesia to take similar measures by reducing operating rates and suspending exports.
China gives priority to the domestic market and faces the challenges of diversifying energy sources
Although China ranks third in Asian fuel exports after South Korea and Singapore, most of its production from its huge refining sector is allocated for internal consumption. The recent restrictions highlight the fragility of dependence on the Gulf region, especially since China was receiving almost all of Iran’s crude oil exports before the outbreak of the recent attacks, which puts the strategy of diversifying sources of hydrocarbons that Beijing has adopted over the past years to a real test.
Energy experts believe that suspending Chinese exports will increase pressure on fuel markets in Asia, which are already suffering from a shortage of supplies passing through the Strait of Hormuz.
