China calls for independent refiners to maintain fuel output amid war disruption, sources say

China's state planner has told independent refiners not to cut run rates below their average levels of the past two years, several sources familiar with the matter said on Thursday, in a bid to safeguard domestic fuel supply.

The move comes as smaller refiners had been expected to cut crude processing rates in April following a sharp rally in oil prices due to the U.S.-Israeli war with Iran, and persistently weak domestic fuel demand.

The National Development and Reform Commission delivered the message at a meeting with independent refiners this week, the sources said. The NDRC did not immediately respond to a faxed request for comment.

Failure to comply could result in reduced crude import quotas, the sources added.

China regulates oil imports by its independent refiners, known as teapots, under a quota system. The teapots operated at about 55% capacity in February and March, according to Energy Aspects.

To pre-empt a potential fuel shortage amid the war in the Middle East, China last month halted refined fuel exports, with the curbs extending into April.

-Reporting by Siyi Liu, Trixie Yap and Florence Tan in Singapore; Additional reporting by Beijing newsroom; Editing by Tony Munroe and Jan Harvey/Reuters