In 2023, direct transfer on fossil fuels for transportation in China stood at approximately $13.66 billion. The forecast shows a steady decline: $12.91 billion in 2024 to $9.93 billion by 2028. This represents a year-on-year decrease ranging from 5.81% in 2024 to 6.93% by 2028. Over this five-year period, the compound annual growth rate (CAGR) is approximately -6.28%, reflecting a significant downward trend as China reduces reliance on fossil fuel subsidies.
Future trends to watch include the transition to electric vehicles, government policies favoring sustainable energy, and potential volatility in global oil markets that may affect subsidy allocations.
