China’s oil consumption fell 9% year over year in the second quarter as expensive crude accelerated the use of electric cars, trucks, rail and industrial equipment.
The decline helped cut China’s carbon dioxide emissions by 1% during the quarter, according to an analysis by the Centre for Research on Energy and Clean Air. It was the first quarterly emissions decline in China driven primarily by lower oil consumption.
Power-sector emissions rose 3% during the same period as coal-fired generation increased.
Electric vehicles displaced 36 million metric tons of oil during the first half of 2026, accounting for roughly one-third of the reduction in Chinese oil demand. EVs displaced 19 million tons during the second quarter alone, 50% more than a year earlier.
Electric trucks produced the fastest change. Alternative-fuel use in China’s trucking sector jumped 90% year over year between January and June, reducing diesel consumption in one of the country’s largest transportation fuel markets.
Oil got more expensive after the Iran war disrupted Persian Gulf supply and traffic through Hormuz. China cut crude imports and drew more heavily from inventories. At the same time, EVs and electric trucks were replacing more gasoline and diesel, giving China another way to reduce its exposure to high oil prices.
Oil use also fell in construction and mining as electric equipment replaced diesel-powered machinery. Slower growth in China’s chemical sector reduced another source of petroleum demand.
CREA estimates lower oil consumption prevented roughly 35 million tons of carbon dioxide emissions during the second quarter, equal to about 1.3% of China’s total emissions during the period. The calculation includes emissions associated with electricity used to charge EVs.
China remains the world’s largest crude importer, giving changes in its transportation fleet consequences well beyond its emissions numbers.
CREA expects Chinese emissions could fall for the full year as oil demand weakens, property activity remains subdued, and coal-to-chemicals production runs near capacity.
For oil producers, the 9% decline is the number to watch. China’s enormous EV fleet was already eroding gasoline demand. $90-plus crude is now speeding up diesel displacement too.
By Julianne Geiger for Oilprice.com
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