Stories
China Oil Dependence Plummets Amid Electric Vehicle Boom
- •China's oil demand is forecast to drop for the third consecutive year in 2026, driven by a rapid rise in electric vehicle adoption.
- •New-energy vehicles captured a record 67 percent of China's domestic passenger-car retail sales in September.
- •Sales of conventional fuel-powered passenger cars plummeted 43 percent year on year in September.
- •China's crude oil imports fell 21.5 percent year on year in September to 37.1 million metric tonnes.
- •While electric vehicles reduce transport fuel demand, sectors like aviation, shipping, and petrochemicals continue to rely on oil.
Key Questions Answered
China's oil demand is falling due to an electric vehicle boom, with new-energy vehicles capturing a record 67 percent of domestic passenger-car retail sales in September. This surge has caused retail sales of conventional petrol and diesel cars to drop sharply, contributing to forecasts of a third consecutive annual decline in China's oil demand for 2026.
According to Sinopec’s Economics and Development Research Institute, China's oil demand is forecast to fall by 600,000 barrels per day, or 3.9 percent, in 2026. This reduction is driven by steep projected drops in transport fuels, including an 8.7 percent decline in gasoline consumption and an 11.4 percent fall in diesel consumption.
China’s crude oil imports fell by 21.5 percent year on year in September to 37.1 million metric tonnes, which is equivalent to approximately 9.03 million barrels per day. Customs data also showed that imports for the first nine months of 2026 dropped 15.3 percent compared to the previous year.
