Chinese authorities have told independent refiners to keep gasoline and diesel
output at least at 2025 levels, even at a loss, to secure domestic supply amid
disruptions to global crude trade caused by the Middle East conflict, according
to people familiar. The National Development and Reform Commission warned that
refiners cutting run rates risk reductions in future crude import quotas. The
directive comes as “teapot” refiners face shrinking margins due to surging oil
prices and the loss of discounted sanctioned crude, with utilization rates
falling to around 63% and margins turning negative, the weakest since 2024.
