China, the world’s biggest car market, plans to ban the production and sale of diesel and petrol vehicles, further threatening the future profitability of oil; Nigeria’s major revenue source, The Sun reports.
The development is coming two months after the UK, like Germany, France, India, Norway and Netherlands, revealed plans to ban fuel-run cars, as part of efforts to reduce air pollution. The ban will lead to a reduction of oil demand in China, as the country is currently the world’s second-largest oil consumer after the United States (US).
Xin Guobin, China’s vice industry minister, said it had started “relevant research” but that it had not yet decided when the ban would come into force. In place of oil dependent cars, China plans to introduce into the auto market electric battery cars and plug-in hybrids to account for at least one-fifth of its vehicle sales by 2025. China made 28 million cars last year, almost a third of the world’s total production.