China Shifts Energy Strategy to Enhance Import Diversification and Reserves
China will continue to diversify its energy imports and boost energy reserves to help enhance its capacity to cope with an “emergency situation”, Wang Changlin, vice chair of the country’s state economic planner, said on Friday.
The world’s energy supply has been disrupted by the Iran war that began on February 28, with hundreds of tankers and other ships stuck by the closure of the Strait of Hormuz, which carried about 20% of global oil shipments before the conflict.
The world’s biggest oil importer’s energy markets are steady owing to government measures to safeguard domestic oil supply to cope with the global price shock, Wang told a National Development and Reform Commission press conference.
China has adjusted the ceiling prices of domestic petrol and diesel retail prices three times since the war started. The petrol retail price limit has risen by 2,275 yuan ($333.34) per ton, while diesel has increased by 2,185 yuan per ton.
However, the second and third price adjustments were limited to around half the typical increase under the country’s pricing mechanism.
China will also push domestic production more aggressively and expand energy reserves to strengthen energy security, said Wang.
China produced 4.3 million barrels per day of oil last year, hitting a new record.
Entering 2026, China’s oil production kept growing. Despite a year-on-year decrease in March’s oil imports, the country’s oil output reached a record monthly high of 4.44 million bpd.
($1 = 6.8249 Chinese yuan renminbi)
Reporting by Kevin Yao; Writing by Joe Cash and Sam Li; Editing by Christian Schmollinger and Kate Mayberry
This article was first reported by Reuters
