China has authorized exports of gasoline, diesel and jet fuel from at least three refiners this month, a sharp reversal of wartime restrictions. The Ministry of Commerce approved shipments totaling 1.3 million tons in July, compared with 2.5 million tons of clean‑product exports in February, before the Iran war.

The move follows a March ban that aimed to protect the domestic market from a loss of Persian Gulf oil. By late April, energy supplies had steadied enough for state‑owned plants to reapply for permits, and by May China began permitting limited exports to energy‑starved nations.

The sudden increase in Chinese fuel availability has already tightened Asian gasoline spreads, with the spread versus Dubai crude falling to the lowest levels since late March. Local refiners face shrinking margins as benchmark spreads compress.

For investors and corporate leaders, the policy shift signals a shift in regional oil dynamics. Companies must monitor quota allocations closely and prepare for tighter refining spreads that could erode profitability across Asia.