China has eased restrictions on refined fuel exports this month amid high global oil prices and ample national reserves. However, the government has simultaneously imposed compliance requirements on refiners to safeguard domestic stockpiles, according to three sources familiar with the matter.

A person familiar with the situation, speaking anonymously, said, “With the interim truce between Washington and Tehran having collapsed, Beijing has adopted a more cautious stance on easing curbs for fuel exports.” Refiners must now adhere to dual requirements: shipping fuels only within allocated quotas and maintaining inventory levels above those recorded at the end of February 2026.

The latest export quotas, covering refined products such as petrol, diesel, and jet fuel, have been mostly allocated to state-owned domestic refiners. These export curbs were initially introduced in March 2026 following the outbreak of the US-Israeli war on Iran, although Beijing never formally acknowledged the restrictions.

Fu Chengyu, former chairman of China National Offshore Oil Corporation and Sinopec, detailed the policy in an article published on July 14, 2026. He noted that since the second quarter of 2026, China’s National Development and Reform Commission and Ministry of Commerce have tightened supervision over refined oil exports.

This cautious approach reflects China’s effort to balance its role in global energy markets with the need to secure domestic fuel supplies amid ongoing geopolitical instability.

Sources