80% of Guangdong Province’s Refined-Oil-Consumption Increase due to Jump in Number of Vehicles

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Guangdong International Petroleum Trade Strategy Forum held in early September revealed that the refined-oil consumption in Guangdong Province increased by an average of 8% since 2000, making it one of the nation’s highest rates. Statistics at the forum, hosted by the Guangdong Petroleum Industry Association, showed that in the past seven years, the increase was mainly due to the increase in the number of vehicles. In fact, 80% of the total increase came from vehicles.

Statistics also showed that between 2000 and 2007, the annual increase in the number of vehicles, excluding motorcycles, in the province averaged at 20%. Starting from 1.9 million cars in 2000, the estimated total number of cars in the province by the end of this year is 5.7 million. The annual refined oil consumption in the province jumped from 8.7 million tons in 2000 to 16 million tons in 2007. It is an almost two-fold increase. The percentage of refined oil consumed by cars increased from 67.5% in 2000 to 73.2% in 2007.

The steady and fast economic growth in Guangdong Province will surely maintain the growth momentum of refined oil consumption. Projecting on an average annual GDP growth rate of 10% in Guangdong between 2007 and 2010, and a related refined oil demand increase co-efficient of 0.6, the demand for refined oil will go up by 6% yearly. Based on the 20.5 million tons of refined oil consumed by Guangdong in 2006, by 2010, the province’s need for refined oil will reach 25.9 million tons.

Because of the rapid increase in car ownership in the province, it is estimated that by 2010, cars will use 77% of all refined oil in the province.

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