China is pushing refiners to cut fuel production and boost petrochemical output as EV adoption reduces gasoline and diesel demand.
The National Development and Reform Commission emphasized this shift in its annual report. Sinopec Chairman Ma Yongsheng noted diesel demand peaked in 2019 and gasoline in 2023, though overall oil consumption continues to rise due to growing chemical demand.
China’s refining sector is dominated by state-owned firms like Sinopec, but many independent refineries, mainly in Shandong, face economic strain due to shrinking fuel margins and reduced tax benefits.
Beijing aims to cap total refining capacity at under 1 billion tons annually by this year, down from around 960 million tons currently.
