According to the Toyota gasoline engine oil requirements, this paper describes that the low viscosity engine oil of 0W-16 has been developed jointly by Sinopec and Toyota，which also conforms to the Toyota specification. As we know, the development of low viscosity gasoline engine oils should not only focus on fuel economy improvement, but shear stability and low speed pre-ignition (LSPI) prevention property should be taken into consideration. The main elements content in the formulation was determined according to the results of Toyota’s previous LSPI research and the initial 0W-16 engine oil had passed Toyota LSPI test. Based on all above, viscosity index improver (VII) with better friction reduction property was selected by the Mini-traction Machine (MTM) and the High-frequency Reciprocating Rig (HFRR) tests. The developed 0W-16 low viscosity gasoline engine oil has significantly improved fuel efficiency compared to Toyota GF-5 0W-20 gasoline engine oil in the Toyota engine fuel economy test. 1.0% fuel efficiency improvement was achieved for the fresh oil, as well as the aged oil which demonstrates enough fuel economy retention performance after an aging equivalent to mileage of 4,000 miles. Additionally, the wear protection performance was further confirmed by the Toyota durability test which demonstrates the well endurance performance of this newly developed low viscosity gasoline engine oil.