In 2022, China had 100 fewer fuel stations than in 2021, with the number falling to 107,600, according to the 2022-2023 “Blue Book” on the petroleum distribution sector.
At the same time, car ownership grew 5.8% on the previous year, reaching 319 million units. And the national road network expanded by more than 74,000km – to reach 5.35 million km.
The 0.11% decrease in petrol station prevalence may look insignificant. But after years of continuous growth, it could mark an inflection point for both the transportation sector, and the oil and gas industry, against the backdrop of China’s dual-carbon goals, to peak carbon emissions before 2030, and reach carbon neutrality before 2060.
China's Blue Book suggests filling stations are threatened by a combination of weaker consumer demand, itself spurred by the pandemic and high oil prices, and the quickening shift from conventional to electric vehicles (EVs). Such stations must be transformed to cater for multiple energy sources, it states.
The rise and fall of petrol stations
China’s first commercial filling station was built in Shanghai in 1924. From the late 1970s, reform and opening-up policies meant the gradual loosening of controls on prices of refined oil products, including petrol, kerosene, diesel, and alternative fuels such as ethanol-blended petrol and biodiesel. Filling stations became a lucrative business opportunity.
In 1980, there were around 610 in China. By 2000, that had rocketed to more than 94,000, on the heels of the rapid expansion of the oil and gas, and automotive, industries. The number at that point was higher than car ownership figures required, and it has changed little since. Competition is fierce and the market remains saturated. Yet steady, incremental growth had been maintained, until last year.
According to the latest Blue Book, half of China’s filling stations are operated by the industry giants Sinopec (29%) and PetroChina (21%). The remainder are privately run (46%), state-owned, through corporations like China National Offshore Oil Corporation (1%), or represented by foreign brands such as Shell (3%).
Experience from the world’s leading filling station markets shows how numbers can peak and then fall back. The number in the US began slowly coming down about 20 years ago; in Japan, it peaked at around 60,000 in 1994, and has steadily declined since – with 27,000 recorded in the first half of this year.
PetroChina will have about 160 fewer stations in 2022 than in 2021, according to the Blue Book. While Sinopec will see its number edge up by 0.1%. Sectoral experts and the Blue Book all point to the explosive growth of EVs as an influencing factor.
For the full article please visit; China may have reached peak petrol station (chinadialogue.net)
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