China’s fuel exports tumble over first half on reduced quotas

China’s shipments of gasoline and diesel plunged over the first six months of the year after the allocation of smaller export quotas.

Overseas shipments of gasoline were at 5.6 million tons in the first half, 42% lower than the same period in 2021, according to General Administration of Customs data. Diesel exports were at 2.06 million tons, down 84%.

China’s overall export quotas are around 40% lower than the same point in 2021, with Beijing seeking to limit shipments as part of efforts to reduce pollution and consolidate the sector. A rebound in domestic fuel demand last month also prevented refiners from shipping too much overseas. 

Gasoline exports fell to 730,000 tons in June, or about 203,000 barrels a day, the least since August, according to Bloomberg calculations. Diesel flows rose to 330,000 tons, or about 82,000 barrels a day. Overseas shipments of the fuels are expected to increase this month after the recent allocation of new quotas, according to industry consultant JLC.

Jet fuel exports over the first six month of this year were 15% higher than the same period of 2021 at 4.28 million tons.