China Tightens Fuel Export Controls Amid Iran War to Protect Domestic Supply
Despite relaxing certain restrictions in March 2027, China continues to impose stringent controls on fuel exports, emphasizing the importance of domestic energy security amid the escalating conflict in Iran. This month, Beijing removed quotas on refined fuel exports but implemented new compliance measures for refiners, which include maintaining inventory levels above those recorded at the end of February 2027. The quotas, primarily affecting petrol, diesel, and jet fuel, are mainly distributed to state-owned refiners. Reports suggest that the breakdown of the US-Iran interim truce has led to a more cautious stance. Since the second quarter of 2026, oversight on refined oil exports has been tightened by China's National Development and Reform Commission and Ministry of Commerce, according to Fu in Energy Intelligence.
Key facts
- China lifted refined fuel export restrictions in March 2027 amid elevated global oil prices and ample reserves.
- New compliance requirements mandate refiners to keep inventory above end-February 2027 levels.
- Export quotas cover petrol, diesel, and jet fuel, allocated mainly to state-owned refiners.
- The Iran war's resurgence and collapse of the US-Iran truce led to a cautious stance.
- Since Q2 2026, China's NDRC and Ministry of Commerce tightened export supervision.
- Domestic consumption security remains the top priority for Beijing.
- Three sources with knowledge of the matter provided information.
- Fu reported the developments in Energy Intelligence.
Entities
Institutions
- China's National Development and Reform Commission
- Ministry of Commerce
- Energy Intelligence
Locations
- China
- Beijing
- Washington
- Tehran
- Middle East
- Iran