Sinopec Confronts Electric Vehicle Shift as Fuel Sales Plunge

The company’s latest figures underscore the severity of the transition. Domestic refined oil consumption dropped 8.6% year-on-year in the first half of 2026, with diesel demand falling by 11.5% and gasoline sliding 7.9%. While jet fuel provided a narrow 1.3% offset, the broader marketing and distribution segment saw revenues contract by 1.5%. Chemical demand proved equally tepid, as ethylene equivalent consumption fell nearly 10%.

Hou Qijun, installed as chairman just last year, openly acknowledged that the firm’s sheer scale has hindered its agility in a rapidly electrifying market. He is now pushing to reorganize the company’s focus toward shale oil development and sustainable aviation fuels. By slashing refining costs and shifting investment priorities, Sinopec hopes to insulate itself from an era where the nation's primary transport fuel is increasingly becoming a legacy product.