China Fuel Export Ban — March 5, 2026

Date: March 5, 2026
Action: China orders largest oil refineries to suspend exports of diesel and gasoline

Summary

On March 5, 2026, China ordered its largest state-owned oil refineries to suspend exports of diesel and gasoline. This policy response prioritized domestic fuel supply security in the face of elevated crude prices and uncertain import availability due to the Hormuz disruption.

Significance

China's decision to restrict refined product exports was notable for several reasons:
1. It signaled that the world's largest energy importer was prioritizing its own domestic market over international market share
2. It removed a potential source of refined product supply to other Asian and emerging markets
3. It reflected the severity of the supply shock: even countries with bilateral deals with Iran (China) were taking protective measures

The export ban came as Asian refineries faced naphtha feedstock shortages (see naphtha and asian-steam-crackers), compounding the regional refined product tightness.

Source

@Polymarket — March 5, 2026

q1-supply-destruction · q2-price-impact · q3-europe-impact · naphtha

Bibliography

Compiled from oil-shock-monitor-kb daily briefs and institutional sources.