China has announced its first fuel export quotas for 2026, totaling 19 million tons of refined fuel. This announcement, reported by Reuters, reveals that the quotas remain largely consistent with the initial batch issued for the previous year. The export quotas encompass a variety of fuels, including gasoline, diesel, and jet fuel, along with 8 million tons allocated specifically for low-sulfur bunkering fuel.
Most of these quotas, over 70%, have been distributed to state-owned energy giants Sinopec and CNPC. Collectively, these two companies received quotas amounting to 13.76 million tons of gasoline, diesel, and jet fuel. The continuity in these export volumes reflects China’s strategic approach to managing its fuel supply amid fluctuating global demand.
While the new quotas suggest a stable export policy, China’s refined fuel exports for 2025 have shown a decline compared to the previous year. Data indicates that from January to November 2025, refined fuel exports reached 52.65 million tons, marking a decrease of 3.2% compared to the same period in 2024. Specifically, exports in November 2025 dropped by 2.2% when compared to November 2024. Despite this overall decline, there was a noticeable rebound in exports from October to November, with a solid increase of 13.3%.
Looking closer at specific fuel types, jet fuel exports have seen significant growth this year. In the eleven months leading up to November, jet fuel exports surged by 10.9%, amounting to 19.55 million tons. November alone brought a remarkable increase of 53.6%, with exports hitting 2.43 million tons. Conversely, gasoline exports faced considerable challenges, experiencing a staggering 51.7% decline in November 2025, with total exports for the year reaching 7.69 million tons, down 16% from the previous year.
China’s fuel production in 2025 has had a significant impact on regional prices, creating challenges for other Asian refiners. The country’s output has consistently outstripped domestic demand, which has led to stronger export activities throughout the year. This trend underscores China’s pivotal role in the global fuel market and its influence on pricing dynamics in the region.
As the world observes these developments, the implications of China’s fuel export policies will continue to resonate across international markets, shaping the strategies of both exporters and importers alike.
