Archive · 3 Sep 2026
China’s Oil Demand Slump Keeps Emissions In Check
China used much less oil in the second quarter of 2026.
This happened partly because gasoline and diesel became more expensive.
Many drivers switched from fuel-powered cars to electric vehicles.
Trucks also increasingly used electricity instead of diesel.
Because less oil was burned, China’s total emissions fell slightly.
Coal use at power stations still increased, so the change was not caused by every energy source declining.
Researchers said this shift may continue because electric vehicles are becoming more common.
China’s oil demand may already have reached its highest point, according to the chairman of Sinopec.
If emissions keep falling, China could move ahead of its goal to stop emissions from rising before 2030.
China’s oil consumption fell 9% year-on-year in the second quarter of 2026, according to CREA.
Transport-sector oil use dropped 16%, while crude-oil processing declined 11%.
Higher fuel prices linked to the Iran War encouraged drivers to switch from gasoline and diesel to electric vehicles.
China’s total emissions fell 1% even as coal use at power stations continued to rise.
CREA reported that electric-vehicle numbers grew by one-third and charging volumes increased 60% in the second quarter.
- Who
- Chinese drivers, electric-vehicle users, the Centre for Research on Energy and Clean Air, and Sinopec are central to the report.
- What
- China’s oil consumption fell sharply, helping reduce total emissions despite rising coal use.
- When
- The reported decline occurred in the second quarter of 2026; Sinopec’s chairman said oil consumption likely peaked the previous year.
- Where
- China.
- Why
- Higher oil prices encouraged transport electrification, increasing electric-vehicle use and reducing gasoline and diesel consumption.
- Oil consumption
- Down 9% year-on-year in China during the second quarter of 2026.
- Transport oil use
- Down 16% in the second quarter.
- Crude processing
- Down 11%.
- Total emissions
- Down 1%, according to the Centre for Research on Energy and Clean Air.
- Electric vehicles
- The total number grew by one-third in the second quarter.
- Charging volumes
- Increased 60% in the second quarter.
- Oil-demand peak
- Sinopec’s chairman said China’s oil consumption likely peaked in the previous year, five years ahead of the government’s target.