China's Oil Consumption Falls by 9% as EVs Gain Momentum

China's oil consumption dropped by 9% in Q2 2026, with electric vehicles and trucks driving the historic decline. The Centre for Research on Energy and Clean Air (CREA) attributed this decrease to high crude prices accelerating the adoption of alternative fuels.

Electric vehicles displaced 36 million metric tons of oil in the first half of 2026, accounting for about one-third of the reduction in Chinese oil demand. In Q2 alone, EVs displaced 19 million tons, which is 50% more than a year earlier.

The use of alternative fuels also increased in China's trucking sector, with electric trucks showing the fastest change. Alternative-fuel use jumped by 90% year over year between January and June, reducing diesel consumption in one of the country's largest transportation fuel markets.