⬤ China's petroleum consumption for gasoline and diesel has likely hit its ceiling. The shift is being driven by a surge in electric vehicles and LNG-powered trucks, plus the massive expansion of high-speed rail networks that are replacing long-haul road trips. Traditional fuel demand is dropping as these alternatives take over.
⬤ Data from 2000 to 2023 shows gasoline and diesel consumption grew steadily for years but recently started flattening out. EVs—both hybrids and full battery models—are cutting into gasoline demand, while LNG trucks and high-speed rail are doing the same for diesel. The transportation sector is fundamentally changing how China moves people and goods.
⬤ Still, China's overall petroleum consumption isn't going anywhere just yet. Aviation fuel needs keep climbing, and the petrochemical industry maintains steady demand. These two sectors will drive petroleum growth even as transportation moves away from traditional fuels.
⬤ This transformation reflects China's broader push toward cleaner energy. The country is actively reducing carbon emissions in transport through EVs and alternative fuels. But aviation and petrochemicals ensure petroleum remains a critical part of China's energy mix for years to come.
