July 30, 2025 [Oil Price]- China’s exports of gasoline and diesel are on track for a 16-month high in July as refiners take advantage of higher refining margins and still available fuel export quotas.

In July, China is poised to export 859,000 barrels per day (bpd) of gasoline, diesel, and other light and middle distillates, up from 796,000 bpd in June, according to data by commodity analytics firm Kpler cited by Reuters columnist Clyde Russell.

The export volumes in July are set to be the highest since March 2024, as refining margins have increased in recent months. The refining margin for gasoil, the key component for making diesel, has jumped by more than 50% since March this year to above $20 per barrel at the end of July.

Gasoil exports from China are also on track for more than a year-high in July, per the data compiled by Kpler.

Chinese refiners are looking to capture higher margins this summer, following weak margins in the first quarter and part of the second quarter. The plants also have unused quotas for exports of fuels, which the central government allocates to refiners.

As fuel demand in China has largely disappointed bulls so far this year, the overseas market has started to look more tempting for refiners with quotas amid rising margins.

Improved fuel margins and the end of spring maintenance boosted China’s oil refinery throughput in June to the highest level since September 2023.

Chinese refiners processed a total of 15.2 million bpd of crude oil into fuels last month, up by 8.5% from a year earlier, and up from the lows seen in April and May.

China may have room to raise distillate fuel exports further, especially those of diesel, as the market is set to tighten more than previously expected, due to new EU sanctions targeting imports of fuels processed from Russian crude oil.