Sinopec Sees China Oil Demand Falling 8.9% in 2026

Sinopec, the world's largest refiner, predicts a 8.9% decline in Chinese oil demand by 2026 due to soaring oil prices and the rapid growth of electric vehicles. The country, the biggest importer of crude oil, is projected to see its oil consumption drop by 600,000 barrels per day (bpd) on average this year compared to last year.

Gasoline demand is expected to fall by 8.7%, while diesel consumption is anticipated to plummet by 11.4%. The only transportation fuel with a slight increase in demand is jet fuel, which is projected to rise by 1.3%. The sharp rise in oil and fuel prices due to the Iran war has hastened the shift towards electric vehicles, which has been on a steady rise in recent years.

Sinopec, officially known as China Petroleum & Chemical Corporation, is shifting its focus towards new energy and chemicals to bolster revenues and profits, as domestic fuel sales have hit their lowest level in nearly a decade. The company's first-half earnings report revealed a 8.6% year-on-year decline in domestic fuel sales, with gasoline consumption down by 7.9% and diesel sales decreasing by 11.5%.