China’s diesel use falls as gas, gasoline post gains

Diesel use in China dropped 3.7% in 2015 from the prior year, according to new data made available Monday from the nation's National Development and Reform Commission.

The decline is greater than the 1.5% drop in diesel usage in 2014. Meanwhile, gasoline and natural gas consumption rose by 7% and 5.7%, respectively.

The figures reflect divergent economic trends, as gasoline demand in the world's top automobile market rises. Meanwhile, slowing industrial production has hampered the diesel market.

Industrial output in China expanded by 6.1% last year, representing the slowest pace of growth since at least 1999.

However, China's total vehicle sales are expected to rise a further 6% this year after increasing to a record in 2015.

In a forecast issued last month, the International Energy Agency (IEA) expects Chinese diesel consumption to stay flat or fall in 2016, while gasoline use will rise by 200,000 bpd. Diesel exports from China surged 75% last year, representing a record volume.

The 5.7% growth in natural gas was likely driven by a price cut in November, according to industry analysts, since consumption in the first 11 months of the year had only risen by 3.7%.