Commercial sources and shipping data indicate that European and American gasoline shipments are heading to the Asia-Pacific region after Asian prices rose due to supply constraints caused by the war in Iran. The war has disrupted crude oil and petroleum product shipments from the Middle East to Asia, prompting Asian refineries to cut production and forcing fuel distributors to seek supplies from distant places like the U.S. and buy more Russian fuel. The extra shipping costs will exacerbate already high fuel prices for consumers and businesses. Ship-tracking data and traders reported that at least three gasoline cargoes totaling about 1.6 million barrels were loaded from Europe to Asia last week. Companies like Vitol and TotalEnergies are shipping fuel eastward to capitalize on better profit margins in Asia. Vitol and TotalEnergies declined to comment. Exxon Mobil had earlier booked American gasoline shipments bound for Australia. Europe typically sends only small gasoline shipments east of the Suez Canal, with its main markets being the United States, Latin America, and West Africa. Nitin Prakash, an analyst at energy research firm Rystad Energy, said: "Even if inventories look comfortable now, lower refining rates could crimp supply outlooks and support gasoline margins." Meanwhile, China has stepped in to temper fuel price hikes, raising the retail price caps for gasoline and diesel by about half of the expected increase. The National Development and Reform Commission, the government body in charge of planning, said yesterday it would increase the retail price caps for gasoline and diesel by 1,160 yuan ($167.93) per ton and 1,115 yuan per ton, respectively. Under the current pricing mechanism, gasoline and diesel prices were supposed to rise by 2,205 yuan per ton and 2,120 yuan per ton, respectively.
