China’s gasoline exports fell to their lowest level in over a decade, according to customs data released on Tuesday. In February, exports dropped 73% year-on-year, reaching only 200,000 metric tons (1.69 million barrels). This decline is attributed to reduced refinery production and narrowing profit margins. In addition to gasoline, exports of diesel and aviation fuel also decreased, highlighting a broader trend in the refined oil market.
Emma Li, a senior market analyst at Vortexa, noted that the decline in gasoline exports was constrained primarily by lower production levels, especially among independent refiners known as “teapots,” which are primarily located in Shandong province. Furthermore, strong domestic demand during the Spring Festival travel season added pressure, limiting the volume available for export. Contributing factors included weak margins in the Asian market, the implementation of an export tax beginning in January, and stringent export quotas that restricted any potential growth in exports. For the first two months of the year, gasoline exports totaled 700,000 tons, a significant 56% decline compared to the previous year.
Diesel exports fell by 42% to 710,000 tons, while aviation fuel exports saw a slight decrease of 5% to 2.67 million tons. Overall, total exports of refined oil products, which encompass diesel, gasoline, aviation fuel, and marine fuel, were down 18% year-on-year, amounting to 7.21 million tons. Additionally, imports of liquefied natural gas (LNG) also saw a considerable drop, falling 19% to 10.6 million tons during the January-February period. These trends signal ongoing challenges for China’s energy export landscape as production and demand dynamics shift.