China may allow small fuel shipments despite ongoing export ban

China is expected to extend its ban on refined fuel exports into April, according to five industry sources familiar with the matter, although limited exemptions may be granted for small shipments to regional countries that have requested assistance.

Discussions are ongoing over the potential export of restricted volumes of diesel, jet fuel, and gasoline to Southeast Asian countries for April. Three sources told Reuters that talks are continuing, while estimates of the permitted volumes vary. Two sources indicated that exports could reach up to 150,000 metric tons, while another suggested the figure could be as high as 300,000 tons.

Despite these possible exemptions, spot export sales by refiners will remain prohibited, the sources said, speaking on condition of anonymity as they were not authorised to comment publicly.

Countries that may receive Chinese fuel supplies include Bangladesh, Myanmar, Sri Lanka, the Maldives, and Vietnam. According to three of the sources, any direct shipments would be handled by Chinese state-owned companies.

China’s top economic planning body, the National Development and Reform Commission, did not immediately respond to a request for comment.

Some countries, including the Philippines and Bangladesh, have sought fuel supplies from China since the start of the Iran war, Reuters previously reported. Beijing has stated that it is willing to work with Southeast Asian nations to help address energy shortages.

China initially imposed the ban on exports of diesel, gasoline, and jet fuel on March 12. The restrictions, which were not publicly announced, do not apply to jet fuel used for international flight refueling or marine bunkering operations.

After the ban took effect, limited volumes of diesel and jet fuel continued to be exported from bonded storage tanks in Hainan province. Two sources familiar with the matter said these shipments had cleared customs before the restrictions were implemented.

Ship-tracking data from Kpler, along with information from two trade sources, showed that the tankers Stavanger Pearl, Auchentoshan, and Qian Chi loaded more than 600,000 barrels of diesel in total from Hainan after March 12. One shipment was destined for Mexico, while the other two were bound for the Philippines.

By Tamilla Hasanova