International profit margins have expanded, and China is preparing to resume exports of aviation fuel, gasoline, and diesel.
Multiple media outlets, including the Financial Times, Reuters, and Bloomberg, reported that China is gearing up to restart exports of aviation fuel, gasoline, and diesel, with state-owned oil companies having applied for export licenses to facilitate shipments in May.
In March 2026, the Middle East conflict triggered global energy supply tensions. To secure domestic supply, exports were restricted—particularly during the early stages of the Iran war, when the closure of the Strait of Hormuz sparked panic over crude oil and refined product imports. In response, China prioritized domestic energy security by suspending refined product exports.
Current market conditions both domestically and internationally have shifted.
Domestic demand weakened: Rising domestic fuel prices, combined with increasing adoption of electric vehicles, have unexpectedly reduced fuel demand, alleviating domestic supply pressures.
International profit margins widened: Surging prices for aviation fuel and other refined products in regions like Asia, due to supply shortages, have significantly expanded export profit margins.
Reports indicate that Beijing aims to primarily supply aviation fuel to Asian countries currently facing dangerously low aviation fuel inventories, in an effort to ease regional supply tightness.
As the world’s largest crude oil importer, China has long been strengthening its energy security strategy. This includes diversifying supply sources, increasing investment in domestic production capacity, and establishing a robust reserve system. These measures have enabled China to demonstrate greater resilience than neighboring economies during this supply shock, allowing it the flexibility to prioritize domestic needs before considering exports.
Original source: toutiao.com/article/1863765493303308/
Disclaimer: The views expressed in this article are those of the author(s) alone.