The restriction, imposed last week and expected to remain in place until at least the end of March, aims to prevent domestic shortages in China, the world’s largest oil importer, according to market sources.

The move curtails exports that were valued at about $22 billion last year.War disruptions amplify supply strainEven before the export curbs, Asian refiners were seeking alternative crude supplies as the conflict in the Middle East disrupted flows from the Gulf.

Several refineries in the region, a key supplier of fuel to Asia, have shut operations as shipping through the Strait of Hormuz was halted.

The combined impact has intensified competition for available cargoes, leaving import-dependent economies exposed to supply shocks.

Australia, Bangladesh and the Philippines, which rely heavily on Chinese refined fuel exports, are expected to face immediate challenges in meeting demand.

China accounted for roughly one-third of Australia’s jet fuel imports last year and about half of supplies to Bangladesh and the Philippines in 2024.

China ranks as Asia’s fourth-largest exporter of refined, or “clean,” fuels after South Korea, India and Singapore, and plays a pivotal role as a swing supplier when regional demand fluctuates.

Analysts say the sudden halt in exports leaves limited room for other suppliers to compensate. “The remaining Asian exporters simply do not have the spare volumes to replicate China’s role as the region’s swing supplier,” Kpler analyst Zameer Yusof said.

Benchmark refining margins in Singapore, known as “cracks,” are expected to continue rising as markets adjust through higher-priced replacement cargoes or reduced demand.

Fuel prices across Asia have climbed sharply. Diesel derivatives rose to $150 per barrel on March 17, while jet fuel swaps reached $163 per barrel, up from about $92 before the war, according to LSEG data.

Gasoline traded at $139.80 per barrel on Monday, compared with $79.30 on February 27.The tightening market is already affecting downstream sectors. Vietnam has warned airlines to prepare for potential flight cuts from April due to fuel shortages linked to export restrictions.

China’s Foreign Ministry said on Monday that military action in the Middle East should cease and that Beijing is willing to work with other countries to ensure energy security.

Mumbai, March 10 – India ordered tighter controls on natural gas and cooking gas supplies on Tuesday after import disruptions linked to the Middle East war affected shipments through the Strait of Hormuz, prompting warnings from restaurant groups that the curbs could force widespread closures.

The Ministry of Petroleum said the ongoing conflict in the Middle East had disrupted liquefied natural gas (LNG) shipments passing through the Strait of Hormuz, a key energy corridor for global trade. The government said the restrictions were aimed at ensuring equitable distribution of gas supplies and maintaining availability for priority sectors.

India, the world’s most populous country, is the fourth-largest buyer of LNG and the second-largest importer of liquefied petroleum gas (LPG), widely used as cooking fuel in households and commercial kitchens. Much of the country’s LNG and LPG imports originate from Middle Eastern producers.

Under the new directive, LNG supplies will be prioritised for households, the transport sector and LPG production. Other industries including fertiliser plants and tea producers will receive between 70% and 80% of their consumption requirements, subject to operational availability.

To offset the supply shortfall, the government said gas allocations to petrochemical facilities and power plants would be partially or fully curtailed.

Several Indian industries have already reported supply reductions. Ceramics and tile manufacturers said gas curbs could affect production as energy costs and availability tighten.

Restaurant and hospitality groups said a separate order issued on Monday prioritising LPG for domestic households had already begun affecting commercial users.

The National Restaurant Association of India said LPG suppliers across the country had signalled that deliveries to eateries could be halted following the order.

“The restaurant industry is predominantly dependent on commercial LPG for its operations,” the association said in a statement, adding that supply disruptions could trigger widespread closures.

PC Rao, head of a hotel industry association in Bengaluru, said the situation had become critical as stocks ran low across smaller establishments.

“Supply of gas has been hit and many of the smaller establishments only have one to two days of stock left,” Rao told AFP.

Larger restaurants and hotels may have up to about 10 days of reserves remaining, he said, adding that many businesses were considering limiting menus or adjusting operations to manage dwindling supplies.

The appeal was issued by the Ministry of Industry and Trade Vietnam, which cited a report highlighting the country’s vulnerability to supply shocks because of its heavy reliance on imported energy from the Middle East.

The ministry said companies should “encourage work-from-home when possible to reduce the need for travel and transportation,” according to a government statement.

Energy prices have risen sharply across Vietnam since the conflict escalated at the end of last month. Data from fuel trader Petrolimex showed gasoline prices have climbed 32%, while diesel has risen 56% and kerosene 80%.

The surge has prompted visible shortages in some areas. Long lines of cars and motorbikes were seen queuing at petrol stations in the capital, Hanoi, on Tuesday.

Authorities also urged businesses and consumers not to hoard or speculate on fuel supplies as the government works to stabilise the market.

Prime Minister Pham Minh Minh held calls on Monday with leaders in Kuwait, Qatar and the United Arab Emirates to secure additional supplies of crude oil and refined fuels.

Vietnam also decided on Monday to remove import tariffs on fuel products until the end of April in an effort to ease price pressures and ensure adequate supply for businesses and households.

Authorities said the directive applies nationwide and is intended to cut electricity consumption and reduce traffic congestion, which officials say contributes to higher fuel use. University campuses in the country consume large amounts of electricity for residential halls, classrooms, laboratories and air-conditioning systems, placing additional strain on the national power grid.

Officials said the early closure of universities is part of emergency measures designed to ease pressure on the country’s power system as energy supplies tighten.

Government and private schools in Bangladesh are already closed for the Islamic holy month of Ramadan, meaning most educational institutions across the country will remain shut during this period.

The decision comes as Bangladesh faces growing uncertainty over fuel and gas supplies following disruptions to global energy markets caused by the ongoing Middle East conflict.

The country relies on imports for about 95% of its energy needs, making it highly vulnerable to volatility in international fuel markets.Authorities imposed daily limits on fuel sales on Friday after panic buying and stockpiling intensified pressure on domestic supplies.

As part of wider efforts to reduce electricity consumption, the government has also asked foreign-curriculum schools and private coaching centres to suspend operations during the same period.

Severe gas shortages have already forced Bangladesh to halt operations at four of its five state-run fertiliser factories, redirecting available gas to power plants to prevent widespread electricity outages. The country has also turned to the spot market to purchase liquefied natural gas at sharply higher prices while seeking additional cargoes to bridge supply gaps.

“We are doing everything we can to reduce consumption and ensure stability in power, fuel and import supplies,” a senior energy ministry official said.