China’s refined fuel exports continued their strong run in July, with shipments of diesel, gasoline, aviation fuel, and marine fuel climbing 7.1% year on year to 5.34 million tons, according to customs data released Friday, reported by Reuters.
The figure marked the highest monthly total since June 2024, underlining Beijing’s reliance on fuel exports to ease a domestic supply glut amid weaker local consumption.
The July numbers extend the momentum seen in June and reflect a broader shift in China’s energy trade dynamics. Refineries, already operating at high capacity, have increasingly looked to overseas markets to absorb excess supply, particularly as the domestic economy struggles with sluggish industrial activity and tepid consumer demand.
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Diesel drives the surge. Diesel exports recorded the most striking growth, surging 53.2% year on year to 820,000 tons in July — their highest level since September 2024. Despite this rebound, diesel exports for the first seven months of 2025 were down sharply, falling 37.7% to 3.63 million tons compared to the same period last year. Analysts say this volatility reflects fluctuating domestic demand and China’s export quota system, which heavily influences refiners’ ability to send products abroad.
Gasoline and aviation fuel also strengthen. Gasoline shipments stood at 930,000 tons in July, an 18.6% increase year on year, though exports in the January-to-July period slipped 15.6% to 4.82 million tons. Aviation fuel exports rose 10.9% to 1.97 million tons in July, reaching their highest monthly level since March 2025. Cumulatively, aviation fuel exports climbed 4.3% in the first seven months of 2025 to 11.92 million tons, pointing to steady international travel demand that has supported refiners’ output.
LNG imports remain under pressure. On the import side, liquefied natural gas shipments declined 6.7% year on year in July to 5.44 million tons, highlighting persistent weakness in domestic energy consumption. However, imports did increase from June, hitting their highest level since January 2025 — a sign that utilities and industrial users may be cautiously restocking ahead of the peak winter demand season.
Strategic backdrop. China’s fuel trade reflects deeper shifts in its energy strategy. The government has been managing refining quotas to balance the competing goals of maintaining refinery operations, supporting state-owned oil majors, and avoiding a domestic fuel glut. Strong exports also help Beijing absorb some of the impact of slowing domestic growth, which has weighed on oil demand this year.
Globally, China’s robust refined fuel shipments are adding supply to regional markets, particularly in Asia, where refiners in Singapore and South Korea are already competing in a tight margin environment. With diesel exports jumping, market analysts warn that refining margins in Asia could face further downward pressure.
At the same time, the dip in LNG imports underscores Beijing’s ongoing efforts to diversify energy sources and control costs, even as it works toward its long-term climate goals.
