China’s Fuel Exports Surge as Global Diesel Shortage Deepens

China exported 6.01 million tons of refined fuels in August, marking a 12.7% increase year-on-year, according to Chinese customs data, reported by Reuters. The total volume surpassed pre-war levels, with jet fuel exports hitting an all-time high. However, the first eight months of the year saw a 9.6% drop compared to the same period in 2025, due to Beijing's fuel export curbs initiated in response to the crude oil crunch caused by the Middle East war.

The Chinese government had imposed a near-total ban on all fuel exports in early March, following the closure of the Strait of Hormuz, which led to a sudden energy commodity supply crunch. Initially, the ban was almost total, with only limited shipments to specific Southeast Asian countries. Since then, China has relaxed the restrictions.

In August, diesel exports surged by 42.1% to 1.33 million tons, driven by a global diesel shortage. Diesel exports for the first eight months of the year increased by 5.9% to 4.84 million tons. Jet fuel exports also rose strongly in August by 41.4% to 2.55 million tons. Gasoline exports, however, declined by 17.5% to 700,000 tons in August.

Concerns have arisen as China's diesel fuel and gasoline inventories are shrinking, potentially prompting the imposition of export curbs, according to Bloomberg, citing recent fuel inventory data. Gasoline inventories at state-owned energy giants fell by 2.9% last week, reaching their lowest level since 2022, as reported by JLC International.

Diesel inventories are at the lowest level in 15 months, with a 2.4% dip last week, the publication noted.