In August 2023, China exported 6.01 million tons of refined fuel, representing a 12.7 percent increase compared to the same period last year. This figure exceeds pre-war crisis levels, and jet fuel exports reached their highest level in history.
Decline in Exports This Year
However, total fuel exports from China in the first eight months of this year faced a 9.6 percent decline compared to the same period in 2022. This decrease is due to export restrictions imposed by the Beijing government earlier this year in response to the crude oil crisis caused by the Middle East war. In early March, just a few days after the war began, China imposed a near-total ban on fuel exports to address the sudden energy supply shortage. This ban was nearly comprehensive, except for some volumes sent to specific countries in Southeast Asia.
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Increase in Diesel and Jet Fuel Exports
In August, a significant increase in diesel export volume was observed. Diesel exports for the month rose by 42.1 percent, totaling 1.33 million tons. This increase occurred as the global diesel shortage is intensifying. Diesel fuel exports in the first eight months of this year experienced a 5.9 percent increase, reaching 4.84 million tons. Additionally, jet fuel exports in August 2023 also saw a significant rise, reaching 2.55 million tons, indicating a 41.4 percent growth compared to last year.
In contrast, gasoline exports in August 2023 fell by 17.5 percent to 700,000 tons. Meanwhile, China's diesel and gasoline inventories have been declining, which may lead to the re-imposition of export restrictions. According to a Chinese commodity market research firm, gasoline inventories at major state-owned energy companies dropped to their lowest level since 2022 last week, facing a 2.9 percent decrease. Diesel inventories also fell by 2.4 percent to their lowest level in the past 15 months.
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