China plans to raise its refined fuel exports in July as it seeks to ease tightening fuel supplies across Asia, according to industry sources.

The increase follows production cuts by several regional refiners facing crude oil supply challenges linked to the conflict involving Iran, the United States and Israel. As one of Asia’s largest fuel exporters, China is expected to help fill part of the supply gap.

Sources said Chinese authorities have allocated about 800,000 metric tonnes of refined fuel exports for July, up from an estimated 600,000 tonnes in June. Most of the additional volumes are expected to be diesel and jet fuel.

China had reduced fuel exports since March to safeguard domestic supplies, limiting shipments outside Hong Kong and Macau. However, the new allocation signals a gradual relaxation of those restrictions.

Industry sources also said Beijing may remove destination limits on exports, giving refiners greater flexibility in selling fuel to overseas markets. Exports to Hong Kong and Macau are expected to remain broadly unchanged from June levels.

Despite the increase, July’s export volume remains significantly below last year’s monthly average.

Analysts say higher exports from China could boost fuel availability across Asia and put pressure on diesel and jet fuel prices, which have already eased as supplies improve. The move comes after Chinese refiners cut processing rates and relied on existing crude inventories amid weak domestic demand and lower refining margins.