2025 fuel demand peaks in China as electric vehicles expand


The largest oil company in China expects that the demand for refined petroleum products will reach its peak at 2025, as the expansion in the demand for electric cars and alternative fuels will cause demand to decline.
Yesterday, Bloomberg News quoted a report by researchers from the China National Petroleum Corporation that diesel consumption peaked five years ago, while gasoline consumption will reach its peak in 2024.
Overall, demand for refined products will grow by 0.9 percent annually through 2025 before peaking around that time, compared to an average annual growth of 5.6 percent from 2000 through 2019.
According to the report prepared by the China Petroleum Planning and Engineering Institute, the research arm of the Petroleum Corporation, electric vehicles and alternative fuels such as hydrogen and ethanol replaced about 13 percent of total demand for gasoline and diesel in 2019, and this proportion is expected to rise to 40 percent by 2030.
The institute’s analysts recommended to adjust the addition of refining capacity to avoid adding more to the already growing surplus of domestic fuel, according to what was reported by “the German.”
The number of electric cars on China’s roads reached 3.8 million by the end of 2019, and the number is expected to rise to 80 million by 2030.


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