China has halted fuel exports just a week after President Donald Trump urged its leader to help stabilize the global supply chain.
According to sources familiar with the situation, the country’s refiners have ceased all fuel exports for October, as reported by Reuters on Thursday.
State-owned PetroChina canceled several gasoline and jet fuel shipments originally scheduled for October, most of which had been arranged within the last two weeks, three of the sources disclosed.
During Xi Jinping’s state visit, Trump specifically requested that he “increase production of refined petroleum products to stabilize global supply,” as noted in a White House fact sheet from September 25.
Max Meizlish, a research fellow at the Foundation for Defense of Democracies’ Center on Economic and Financial Power, mentioned that China has previously imposed export restrictions that were later lifted when it suited their interests. He indicated that China may impose temporary fuel restrictions again but would likely lift them for their own benefit.
“China might limit exports, as they did during earlier conflicts, only to ease those restrictions when it’s beneficial for them,” Meizlish remarked.
This approach might allow China to appear as a solution to a crisis while, in reality, it’s acting out of self-preservation, he added.
As of Thursday, diesel prices averaged $6.39 a gallon across the U.S., a notable increase from $3.71 a year prior, according to the American Automobile Association (AAA).
The Chinese Embassy has not responded to requests for comment regarding this suspension.
The cessation of fuel exports could lead to higher prices in certain countries, as global markets are already grappling with supply challenges stemming from the conflict in Iran and Ukrainian strikes on Russian facilities.
Energy Secretary Chris Wright stated in the Oval Office on Wednesday that the U.S. has lost diesel exports from China, although supplies from some Middle Eastern sources are gradually being restored.
During that same discussion, Trump noted that he regularly contemplates a ban on diesel exports; he believes such a measure could reduce diesel prices, albeit with potential adverse effects on gasoline prices.
As of Thursday, the country has commenced a weeklong holiday and has not authorized its major refiners to export fuel beyond Hong Kong and Macau for October, according to sources.
It remains uncertain whether shipments will resume after the holiday concludes on October 7, as this decision may hinge on domestic fuel stockpiles and refinery output.
Zhejiang Petrochemical Corp., a privately controlled refiner, has not planned any fuel shipments during the holiday week, according to another source.
In September, Chinese refiners exported about 1.4 million metric tons of diesel and at least two million metric tons of jet fuel, including shipments to Hong Kong and Macau, based on trade estimates shared by Reuters.
The Chinese government has tied export capabilities to domestic fuel stock levels returning to prewar standards, according to reports.
Currently, commercial diesel inventories are approximately 20 million barrels below this threshold, according to Zameer Yusof, a senior manager at the commodity data firm Kpler.
“International markets seem to be an afterthought for them,” Michal Meidan, who leads China energy research at the Oxford Institute for Energy Studies, explained.
Meizlish further noted that China’s highly export-dependent economy risks collapse if its trading partners experience economic downturns.
The Energy Information Administration (EIA) predicted in September that U.S. distillate fuel reserves, often referred to as diesel, would remain below the lowest levels recorded in the past five years until late 2026 and a bulk of 2027.
These inventories dropped below the five-year average in April, coinciding with a sharp rise in U.S. net exports following considerable supply withdrawals from the Middle East, Russia, and China.
Such low inventory levels may also result in rising heating oil prices for homes, especially in the Northeast.
Eliminating diesel from the market could tighten supplies further and increase prices, said Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA). He noted that a significant rise in heating oil prices could lead to higher demand for assistance among families that rely on it.
The EIA has forecasted that retail diesel prices will average $5.07 per gallon this year, compared to $3.66 in 2025.
China initially restricted fuel exports back in March due to disruptions in Middle Eastern crude supplies resulting from the Iran war, but began to relax these restrictions in July. Since then, the management of diesel, gasoline, and jet fuel shipments has been handled on a month-by-month basis.
In August, the country’s oil product exports saw a 12.7 percent increase year-over-year, reaching 6.01 million metric tons, the highest since March 2024, as per customs data.
Meanwhile, the U.S. government continues to urge France and Germany to release emergency diesel reserves, warning that failure to do so could lead to U.S. export bans on the fuel.
