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Sinopec shifts capital toward new energy as fuel sales slump
For the first half of 2026, Sinopec reported higher net profit but said domestic refined fuel product consumption fell 8.6% year over year, pressuring earnings.
China’s state-held refiner Sinopec, formally China Petroleum and Chemical Corporation, is planning a business shift as domestic fuel sales decline amid the rise of electric vehicles, OilPrice reported. The company plans to allocate more capital to new energy and chemicals by the end of the decade to support revenue and profit growth.
In remarks carried by Reuters, Sinopec chairman Hou Qijun said the company needs to overcome what he called “big company syndrome” as it grows, arguing its current scale leaves it less able to respond to market changes. Hou was appointed about a year ago, according to the outlet.
Sinopec reported an increase in net profit for the first half of 2026, but it flagged falling domestic fuel sales as a continuing drag on earnings that has weighed on performance for two years. The company attributed the weakness to higher oil prices dampening demand and faster substitution by new energy.
Sinopec said domestic refined oil products consumption dropped 8.6% year over year, with gasoline down 7.9%, diesel down 11.5%, and jet fuel up 1.3%. It also reported weak demand for major chemical products, with ethylene equivalent consumption falling 9.9% year over year.
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