China May gasoline demand to contract over 10% Y-o-Y

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China's daily gasoline consumption in May is projected to fall over 10 per cent compared with the same period last year, partly due to high prices constraining the downstream demand, aside sustained substitution of electric vehicles, according to OilChem's data.

In detail, China's gasoline demand is estimated at around 390.300 tonnes per day in May, rising 6.56 per cent from April but down 10.71 per cent from last May, based on OilChem's analysis. Entering May, the gas stations have launched sales promotions on the backdrop of sound retail margins, easing the constraints on the demand end caused by high prices. However, the May demand is likely to contract over 10 per cent compared with last year, a far more significant year-on-year decline than a normal level of around 5 per cent, considering the continued substitution by electric vehicles.

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On the supply side, China's gasoline production is projected to drop 6.63 per cent month-on-month and 9.26 per cent year-on-year at approximately 391,900 tonnes per day in May, which is primarily attributed to state-owned and independent refineries both reducing the crude throughput amidst high crude costs and expanding losses.