China’s private refiners are seeking government approval to cut oil-processing
rates after Beijing previously ordered them to maintain 2025 production levels
to safeguard domestic fuel supply. The request comes as the Persian Gulf war
drives up crude costs and crushes refining margins. The policy pushed refinery
run rates in April to the highest level in nearly two years, causing gasoline
and diesel inventories to surge while many refiners, especially in Shandong,
suffered mounting losses. China’s top economic planner, the NDRC, has yet to
comment on the requests.
