China is set to receive a 65,000-metric-ton gasoil shipment from India its first such import from the country in over five years. The move comes as global buyers tread cautiously following newly announced EU sanctions targeting certain fuel exports, set to take effect in January 2026.
Shift in Gasoil Trade Flows
China typically sources gasoil and marine diesel from nearby suppliers, particularly for bonded bunkering operations. The last recorded shipment from India to China was in April 2020, amounting to just over 42,000 metric tons.
The latest cargo departed India in mid-July, stopping in Singapore for bunkering before setting course for Zhoushan, a major Chinese bunkering and storage hub.
Uncertainty Over Final Buyer
Industry sources in both India and China indicated that it is unclear whether the cargo has been sold to a final buyer or is being stored by a trader.
Some Zhoushan-based market participants suggested that small bunker suppliers are the most likely recipients, while others speculated the fuel may be stored in bonded facilities pending resale.
This shipment highlights a rare trade route between India and China for gasoil and comes against the backdrop of tightening sanctions and shifting market dynamics. Whether it ultimately fuels vessels directly or remains in bonded storage, the delivery underscores evolving patterns in regional energy trade as buyers adapt to regulatory and market pressures.
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Source: S&P GLOBAL
