China has directed its domestic refiners to stop entering new export contracts for refined petroleum products, according to Ship & Bunker, which cited a Reuters report drawing on industry and trade sources. The directive also calls on refiners to seek cancellation of previously agreed export shipments.
As reported by Ship & Bunker, the policy shift is tied to energy-market pressure stemming from the ongoing conflict in the Middle East, with Beijing moving to secure domestic supply amid the broader regional disruption.
Bunker Sector Shielded from New Policy
For the maritime industry, a key carve-out is in place: bonded bunker fuel sales are excluded from the restrictions, Ship & Bunker reports. Fuel exports destined for Hong Kong and Macau are similarly exempt from the new measures.
Singapore Prices Already Under Pressure
Despite the bunker exemption, the broader policy may still send ripple effects through bunkering markets. According to Ship & Bunker, a halt in Chinese middle distillate exports would be likely to affect both VLSFO and MGO prices in Singapore.
Pricing data from Ship & Bunker shows that VLSFO delivered in Singapore was trading at a premium of approximately $36.50 per metric tonne over Brent crude as of Wednesday — the widest such premium recorded since May 2025. Meanwhile, the spread between Singapore and Rotterdam VLSFO prices reached $51.50 per metric tonne on the same date, also the highest differential seen since May 2025.
These elevated figures signal tightening supply conditions at one of the world’s busiest bunkering hubs, even ahead of any full downstream impact from China’s new export curbs.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker (citing Reuters)
