21 February 2011

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

Gabriel B. Collins and Andrew S. Erickson, “Chinese Now Pay 33% More for Gasoline and 16% More for Diesel than Americans,” China SignPost™ (洞察中国) 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. … … …