The Chairman of Sinopec, Fu Chengyu, predicts Chinese demand for oil will peak within the next ten years or even as soon as 2017, according to a recent conference call.

Sinopec, the country’s largest state-owned oil processing company, says the company is preparing for the future when retailing oil is no longer its core business. Sinopec has 30,000 petrol stations and 23,000 retail shops around the country.

Sinopec’s prediction is contrary to forecasts from big Western oil majors such as ExxonMobil and BP. They believe Chinese demand for oil will continue to grow in the future despite slowdown in Western markets.

Data show the consumption of diesel dropped last year and the forecast of oil demand in China could be as low as three per cent, 50 per cent of the country’s GDP growth.

“In the future, oil and gas will continue to be a major source of energy supply, but they are no longer the only source of energy supply. New energy sources as well as renewable energy will become more important. It is probable that oil business may not be the core business for our company,” Mr Fu said.