Cars driving China’s oil demand

China’s escalating demand for oil can be traced to increased auto sales in the country and government subsidies that keep prices low, analysts said.

Although subsidies were partly lifted recently, gas now costs $3.40 per gallon in China. SUV sales, meanwhile, rose 43 percent in May this year compared with May 2007 and sales of full-sized sedans jumped 15 percent, The Washington Post (NYSE:WPO) reported Monday.

The country now has 15.2 million private cars, which puts it on par with the United States of 1915, when less than 4 percent of the population owned a car.

UPI