China eases controls on fuel exports for a second month, sources say

• August export allowances total 3.6 million tons including Hong Kong shipments and jet fuel refueling, up from July's 2.5 million tons
• Refiners can roll over some August allowances to September due to tight timelines for spot sales
• Export quotas cover gasoline, diesel, and jet fuel, reversing the significant cuts imposed from March through June during Iran war disruptions

Summary: China Eases Fuel Export Controls for Second Consecutive Month

China has relaxed restrictions on refined fuel exports for the second month in August, granting refiners temporary approval to export 2.7 million metric tons to destinations excluding Hong Kong and Macau, according to five industry sources.

Key Figures:

• August export allowance: 2.7 million metric tons (excluding Hong Kong/Macau)
• Total August program (including Hong Kong shipments and jet fuel): estimated 3.6 million tons
• July total export plans: up to 2.5 million tons
• Export quotas cover gasoline, diesel, and jet fuel

Policy Context:

China implemented strict fuel export curbs beginning in March 2026, with significant cuts extending through June. The restrictions were designed to protect domestic fuel supplies amid disruptions caused by the Iran war. The recent easing represents a notable policy shift after months of tight controls.

Additional Flexibility:

Refiners have been granted permission to roll over some August allowances into September due to tight timelines for spot sales, providing additional operational flexibility.

Market Implications:

The progressive loosening of export restrictions signals improving domestic supply conditions in China and could increase global refined fuel availability. This development is particularly significant for regional Asian markets that rely on Chinese fuel exports. The move may help ease tight global diesel and gasoline markets, potentially putting downward pressure on refined product prices.

The National Development & Reform Commission, which oversees fuel quotas, has not yet commented on the policy adjustment.