China tightens fuel export controls as shipments surge to record highs

China is increasing its fuel exports while tightening control over shipments. The government now requires state-owned companies to seek monthly approval for each batch sent abroad. This move follows a rise in overseas sales, with May’s exports reaching around 500,000 tons. In April, Chinese authorities introduced stricter oversight of oil product exports. The new rules demand that state firms obtain permission before shipping fuel overseas. That same month, exports were sent to Southeast Asia, Australia, and other markets.

Plans for June show a further increase in shipments. Total exports are expected to rise to 550,000 tons, up from May’s 500,000 tons. The bulk of June’s exports will be diesel and aviation fuel, with the remainder made up of gasoline. Profit margins for these shipments remain strong. Diesel exports yield an estimated $441.11 per ton, while gasoline margins sit higher at $588.14 per ton.

The new approval system ensures closer monitoring of fuel exports. With June’s shipments set to exceed half a million tons, the government’s oversight will apply to each batch. The focus remains on diesel, aviation fuel, and gasoline for overseas markets.