By South China Morning Post | Created at 2026-07-21 09:02:02 | Updated at 2026-07-21 15:52:26
7 hours ago
Tight mandates remain in place to protect domestic energy security amid a resurgence of war in the Middle East
Published: 4:34pm, 21 Jul 2026
While Beijing has lifted refined fuel export restrictions this month amid elevated global oil prices and ample national reserves, it has also introduced compliance requirements for refiners – a cautious pivot aimed at safeguarding domestic stockpiles, according to three sources with knowledge of the matter.
“With the interim truce between Washington and Tehran having collapsed, Beijing has adopted a more cautious stance on easing curbs for fuel exports,” a person familiar with the matter said in an interview, speaking on the condition of anonymity.
“Refiners now face dual requirements: they can only ship fuels under allocated quotas, while keeping their inventory levels above the end-February mark. Domestic consumption security remains the top priority.”
The latest export quotas – covering refined products including petrol, diesel and jet fuel – were allocated mostly to state-owned domestic refiners, the sources said.
The curbs on fuel exports were first introduced in March following the outbreak of the
US-Israeli war on Iran, though Beijing did not formally acknowledge the restrictions. Fu Chengyu, former chairman of China National Offshore Oil Corporation and Sinopec, the country’s two leading state oil giants, outlined details of the policy in an article published on July 14.
“Since the second quarter of 2026, China’s National Development and Reform Commission and Ministry of Commerce have tightened refined oil export supervision,” Fu wrote in Energy Intelligence, an independent energy news and data provider.
