China to resume October fuel exports after holiday pause, sources say

By Chen Aizhu and Trixie Yap

SINGAPORE, Oct 9 (Reuters) - China is set to resume October refined fuel exports after a brief halt during its Golden Week holiday, four traders familiar with the matter said on Friday, a move that will help ease tight global diesel, gasoline and jet fuel markets.

Beijing began curbing fuel exports in March to safeguard domestic supplies as the US-Israeli war on Iran disrupted crude oil flows and refinery production in the Middle East.

While China relaxed controls between July and September, its curbs have contributed to tighter supply and forced Asian buyers to find alternatives.  

The world's biggest oil importer and home to its largest refining industry, China approved October exports of the three fuels at around 3.7 million metric tons combined, two other industry participants said on Friday.

By comparison, Chinese refiners were expected to export slightly more than 4 million tons of gasoline, diesel and jet fuel in September, Reuters reported last month.

The Middle East war and the Ukraine-Russia conflict have disrupted refined fuel output globally and driven up prices, mainly for diesel fuel, but analysts said China's move would only modestly ease market tightness.

"It will be limited as markets remain tight overall and Middle Eastern supplies are still disrupted," said Stuti Jhunjhunwala, an oil market analyst at Energy Aspects, based in the eastern Indian city of Kolkata.

June Goh, senior analyst at Sparta Commodities, said Beijing's resumption of exports was expected but the volumes were lower than anticipated.

China's National Development and Reform Commission and the commerce ministry did not immediately respond to requests for comment.

Between January and August, Chinese exports of the three fuels combined were 19 million tons, down 21% from the year-earlier period, customs data showed.

HOLIDAY BREAK

Last year China exported an average of 3 million tons a month of gasoline, diesel and jet fuel.

In August 2026, the most recent month for which details are available, China sharply increased exports of the fuels to 4.6 million tons, including 648,000 barrels per day (bpd) of jet fuel, 320,000 bpd of diesel and 191,000 bpd of gasoline.

While Beijing typically regulates fuel exports through a quota system, it has recently tightened oversight by vetting shipments on a month-by-month basis. 

However, China started its week-long National Day holiday on October 1 without giving its refiners approval to export fuel products to regions other than Hong Kong and Macau in October, Reuters reported last week.

Amid the refined fuel tightness, this week the International Energy Agency, which advises industrialised countries on energy policy, agreed to speed the release of oil stocks and prioritise diesel supplies under a March plan.

Although China's fuel export volumes have typically lagged India and South Korea among Asian processors, it is regarded as a key swing supplier for regional markets.

(1 ton=7.45 barrels for diesel)

(1 ton=7.88 barrels for jet fuel)

(1 ton= 8.45 barrels for gasoline)

(Reporting by Chen Aizhu and Trixie Yap; Additional reporting by Sam Li in Beijing, Mohi Narayan in New Delhi, and Jeslyn Lerh in Singapore; Editing by Shri Navaratnam, Christian Schmollinger and Clarence Fernandez)