China’s largest oil refiners are ramping up fuel exports to counter sluggish domestic demand, even as they navigate planned maintenance and mixed profitability, according to fresh market data.
Planned refined product exports for May are expected to reach 304,700 tons, down just 2.4% from April. The slight drop is mainly due to lower shipments of gasoline and aviation kerosene. Diesel exports, however, are on track to rise, helped by stronger margins and a move toward cleaner fuel production, according to Quantum Commodity Intelligence.
The shift toward overseas markets comes as China’s domestic fuel demand remains tepid. In April, apparent consumption of refined oil products reached 34.5 million tons—only a 0.9% increase from a year earlier. This growth lags behind the 1.6% seen in April 2024. Gasoline demand continues to slide due to the growing use of new energy vehicles, while diesel use dropped 2.86% amid weaker industrial and agricultural activity.
Despite negative margins for gasoline and diesel exports in April, recent declines in crude oil prices have widened refiners’ profit margins. As of May 9, the gasoline crack spread reached 1,300 yuan per ton, and diesel stood at 964 yuan per ton. These improved margins are driving refiners to expand their overseas sales.
Major refiners are adjusting quickly. State-owned Sinopec is shifting production to favor higher-margin exports. PetroChina is focusing on producing cleaner fuels, while Hengli Petrochemical, which has backing from Saudi Aramco, is using its integrated facilities to boost export volumes, Chinese analysts said.
In April, Singapore remained the top buyer of Chinese gasoline, importing 674,100 tons. Exports to Malaysia, however, fell sharply by 74.8%, partly due to concerns over potential U.S. tariffs. In March 2025, China exported about 710,000 tons of gasoline to Singapore, Quantum Commodity Intelligence reported.
With better margins and weaker domestic consumption, Chinese refiners are expected to continue looking to global markets to support their operations.
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