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.

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.

Nearly 2,800 shelters and more than 90 facilities including hospitals and learning centres were destroyed in the fire on March 5, leaving more than 12,000 people without shelter, officials said.

More than 1 million Rohingya refugees live in tens of thousands of huts made of bamboo and thin plastic sheeting in camps in the border district of Cox’s Bazar, most having fled a military-led crackdown in Myanmar in 2017.

“The fire was a planned act of sabotage,” senior district government official Abu Sufian, head of the seven-member probe committee, told Reuters by phone from Cox’s Bazar.

He said the blaze broke out in several places at the same time, proving it was a planned act, adding it was a deliberate attempt to establish supremacy inside the camps by militant groups. He didn’t name the groups.

“We recommended further investigation by the law-enforcing agency to identify the groups behind the incident,” he said, adding that the report was based on input from 150 eye witnesses.

The panel also recommended the formation of a separate fire service unit for the Rohingya camps. Each block of Rohingya camps needs to be widened to accommodate fire service vehicles and the construction of water cisterns, and the camps should use less flammable materials in shelters, among other recommendations.

Fires often break out in the crowded camp with its makeshift structures. A massive blaze in March 2021 killed at least 15 refugees and destroyed more than 10,000 homes.

Surging crime, difficult living conditions and bleak prospects for returning to Myanmar are driving more Rohingya refugees to leave Bangladesh by boat for countries such as Malaysia and Indonesia, putting their lives at risk. U.N. data shows 348 Rohingya are thought to have died at sea last year.