Mar 5 • 14:08 UTC 🇲🇽 Mexico El Financiero (ES)

China 'turns off the tap': Orders refineries to halt shipments of diesel and gasoline to Asia due to US-Iran war

The Chinese government has ordered its major refineries to suspend exports of diesel and gasoline amid escalating conflict in the Persian Gulf that threatens crude oil supplies.

The Chinese government has issued a directive for its primary refineries to stop exporting diesel and gasoline as a response to the ongoing conflict in the Persian Gulf, particularly the tensions between the US and Iran, which have disrupted crude oil deliveries from one of the world's largest production areas. This move reflects a growing urgency among Asian countries to prioritize domestic fuel supplies amid the crisis that is manifesting in the region.

While China is currently the third-largest supplier of petroleum products in Asia, most of its extensive refining sector primarily serves its internal market. The suspension of shipments comes just days after conflict broke out in the Middle East, underscoring how quickly geopolitical tensions can impact energy markets. Officials from China's National Development and Reform Commission have emphasized the need for refineries to temporarily halt shipments of refined fuels to ensure adequate domestic availability.

Furthermore, the directive includes a call for refineries to refrain from signing new contracts for fuel exports until further notice. This decision has immediate and potentially long-term implications for fuel supply chains in Asia, demonstrating China's proactive approach to safeguarding its energy needs in light of the uncertain geopolitical climate.

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