China’s gasoline exports fell sharply by 35.7% in July compared to the same month last year, driven by declining profit margins and reduced refinery output. According to data from the General Administration of Customs, gasoline exports totaled 790,000 metric tons (approximately 5.77 million barrels), down from 1.22 million tons in July 2023 and 930,000 tons in June.
Emma Li, a senior oil analyst at Vortexa, indicated that the decline in motor fuel exports is primarily due to weak margins and production cuts at refineries. Export margins for gasoline turned mostly negative between late June and early July, with losses estimated at $3 to $4 per barrel for export sales.
During the first seven months of the year, China’s crude oil throughput decreased by 1.2% to 419.15 million tons. Analysts expect the Chinese government to issue more product export quotas to stimulate refinery activity.
China’s gasoline, diesel, and jet fuel exports are managed under a quota system, with allocations primarily granted to state-run producers. This system is part of Beijing’s strategy to balance domestic supply and demand.
In contrast, jet fuel shipments increased by 20.2% year-on-year to 1.76 million tons in July, reflecting a recovery in air travel. International flights rose by 60% year-on-year in July, reaching an average of 2,111 daily, which is 75% of the pre-pandemic levels of July 2019.
Diesel exports, however, saw a significant drop of 41.2% to 540,000 tons, down from 910,000 tons in July 2023. Although diesel profit margins have improved recently, overall production has declined as refiners prioritize jet fuel production.