China's Sinopec Shifts Strategy as Fuel Sales Slump 8.6% Amid EV Boom

China's state-held Sinopec, the world's biggest oil refiner, reported growing net profit in its first-half 2026 results published last weekend (around August 20), but flagged that domestic refined fuel consumption fell 8.6% year on year: gasoline dropped 7.9% and diesel 11.5%, while jet fuel rose 1.3% on stronger international travel. Revenue in the marketing and distribution segment fell 1.5% year on year, and demand for chemical products was weak, with ethylene-equivalent consumption down 9.9%.

Sinopec chairman Hou Qijun, appointed a year ago, told analysts at a results presentation on Monday, August 24, as reported by Reuters, that the company will allocate more capital to new energy, chemicals, shale oil and sustainable aviation fuel to adapt to China's declining fuel demand as electric vehicles displace gasoline cars.