21 February 2011

China SignPost™ (洞察中国) #23: “Chinese now pay 33% more for gasoline and 16% more for diesel than Americans”

Gabe Collins and Andrew Erickson, “Chinese now pay 33% more for gasoline and 16% more for diesel than Americans,” China SignPost™ (洞察中国), No. 23 (21 February 2011).

China SignPost 洞察中国–“Clear, high-impact China analysis.”©

–With the latest price increase on 20 February 2011, Chinese drivers now pay more than US$4 per gallon of gasoline and diesel fuel—more than 30% more than US drivers pay for gasoline and nearly 20% more than they pay for diesel fuel.

–Fuel demand appears to remain strong, as China imported 5.13 million bpd of crude oil in January 2011—a 27% year-on-year increase.

–Future reductions in Chinese oil use would most likely not come from domestic pricing reforms but from higher global oil prices or demand-side measures such as alternative fuel vehicles; these would have a bigger impact on oil use. …