China's Gasoline Demand Set to Decline Amid Rising Oil Prices
Pricier oil adds to Beijing's EV push
The Economic Times
Image: The Economic Times
China's gasoline consumption is projected to decline by 5.5% this year due to rising oil prices influenced by the ongoing conflict in Iran. This marks a significant contraction, second only to the demand collapse in 2022 caused by strict COVID-19 lockdowns.
- 01Gasoline demand in China is forecasted to drop by 5.5% in 2023.
- 02This decline is attributed to rising oil prices due to the Iran conflict.
- 03The forecast has been revised down from a previous estimate of 5.2%.
- 04This would be the second-largest contraction in gasoline demand on record.
- 05The International Energy Agency predicts a reduction of 60,000 barrels per day in demand this quarter.
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China's gasoline demand is anticipated to decline by 5.5% this year, as rising oil prices driven by the Iran conflict accelerate a shift away from traditional gasoline-powered vehicles. This forecast, provided by GL Consulting, marks a downgrade from an earlier estimate of 5.2%. The projected decline is significant, being the second-largest contraction on record, following the drastic drop in 2022 due to COVID-19 lockdowns. The International Energy Agency also corroborates this trend, predicting a reduction of approximately 60,000 barrels per day in gasoline demand for the current quarter compared to the same period last year. This shift reflects broader changes in consumer behavior and market dynamics as China pushes towards electric vehicles.
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This decline in gasoline demand may lead to higher fuel prices for consumers and accelerate the transition to electric vehicles in China.
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