Bloomberg: China halts gasoline and diesel exports to "secure domestic demand" due to 57% reliance on Middle Eastern crude oil

After the U.S.-Israel coalition attacked Persian Gulf oil facilities, China’s National Development and Reform Commission (NDRC) issued a verbal order to the five major refining companies to immediately stop exports of gasoline and diesel. Bloomberg believes that the direct logic behind this move is to ensure domestic supply, but since 57% of maritime crude oil imports rely on the Middle East, this structural gap cannot be solved by an administrative order alone.
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The NDRC instructed China National Petroleum Corporation, Sinopec, CNOOC, Sinochem Group, and Zhejiang Petrochemical to immediately halt overseas exports of diesel and gasoline. Sources familiar with the matter told Bloomberg that the order has been communicated to the five companies, requesting anonymity.

Exceptions include two categories: aviation fuel and marine fuel stored in bonded warehouses, and normal supplies to Hong Kong and Macau. All other finished oil exports are to be stopped immediately based on the verbal directive.

Why Now

Last weekend, the U.S.-Israel coalition launched attacks on Persian Gulf oil facilities, escalating the conflict to directly impact oil transportation routes. According to shipping data analysis firm Kpler, 57% of China’s maritime crude oil imports come from the Middle East.

After the attack, at least 21 Very Large Crude Carriers (VLCCs) were forced to halt or reroute, with some routes not yet recovered. Japan, India, and Indonesia are also reducing Middle Eastern oil procurement, indicating that supply chain disruptions are not limited to China.

Two Unresolved Issues

The first is the effectiveness of this order. It is a verbal directive, not an official written policy document. In the past, China’s control over finished oil exports was implemented through export quota documents. Currently, there is no public information confirming whether the NDRC plans to follow up with a written document; verbal orders and formal quota documents are fundamentally different in execution.

The second issue concerns alternative sources. Russia’s crude oil exports have approached their maximum capacity in recent years, and increasing production in West Africa and South America requires a longer lead time. Whether these can fill the potential gap left by Middle Eastern oil remains unclear based on current supply chain data.

The trajectory of the conflict is a key variable. If tensions ease within a few weeks, the verbal order may be a temporary measure with limited actual impact on trade. However, if the Persian Gulf shipping lanes remain blocked, China’s problems will shift from “export suspension” to “whether import capacity can be maintained”—a scale of two very different issues. Currently, there is insufficient public information to determine which scenario is more likely.