China has banned all exports of diesel, gasoline, and jet fuel until at least the end of March. This decision aims to prevent domestic shortages during the global energy crisis.
The move will likely increase fuel prices for Asian industrial and transportation sectors. These industries already face supply chain disruptions from the conflict in the Strait of Hormuz.
Asian refiners are seeking alternative crude sources after the Hormuz shipping halt closed several Persian Gulf refineries. China exported $22 billion in fuel last year. This ban removes significant volume from the market and compounds the regional supply shock.