Octane blending
Overview
Demand for high octane components vary throughout the year depending on seasonality, premium gasoline market share, and refinery performance. Stricter gasoline standards also contribute to demand for high octane components.
Among the list of high-octane components are reformate, alkylate, MTBE, ETBE, toluene, xylenes, ethyl benzene, and others. Some of these components primarily see demand from the chemical market but could be diverted to the gasoline pool if there are returns in that segment.
Each blendstock has specific octane rating and rvp content that determines its value in the gasoline pool. Gasoline blenders will look at market prices for each of the octanes and see how it relates to the value in the gasoline pool. In the summer of 2023, high volumes of ethylbenzene were diverted to the gasoline instead of the production of styrene, as styrene prices fell below ethylbenzene blend value.
MTBE is a high-octane component for gasoline blending, but only used in some countries. MTBE demand has been led by growth in Asia, Middle East, and Latin Markets. Other regions have focused on increased biofuel usage which includes ethanol and ETBE.
Argus’ experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest octane blending news
Browse the latest market moving news on the global octane blending industry.
US rolls back strict fuel-economy standards
US rolls back strict fuel-economy standards
Washington, 28 September (Argus) — US president Donald Trump's administration on Monday, 29 September finalized a rule that weakens fuel-economy standards for cars and pickup trucks, further dismantling earlier policies that had supported sales of electric vehicles and hybrids. The new standards will require cars and trucks to achieve an average fuel economy of 34.9 miles/USG by model year 2031, down from a standard of 50.4 miles/USG that former-president Joe Biden had set in 2024. The US National Highway Traffic Safety Administration (NHTSA) said the revised standards will cut the price of a new vehicle by about $1,300. The prior standards would have "forced Americans into cars they never wanted, and wasted Billions on Chargers that were never built", Trump said in a social media post Sunday after giving final approval to the rollback. Despite the upfront savings on the vehicle price, drivers will end up paying an extra $1,300-$1,600 on fuel over the lifespan of the vehicles sold through model year 2031 because of the rollback, according to NHTSA, translating to 738mn bl of additional fuel consumption. Democrats said weakening existing rules will mean higher fuel prices in the future. "Gas prices are at near-record highs and Trump's response is to force you to get fewer miles out of every tank of gas," California governor Gavin Newsom (D) said in a social media post over the weekend. The Republican-led US Congress had already effectively nullified NHTSA's fuel-economy standards last year, when they voted to eliminate all non-compliance penalties on automakers. Congress in the same law also repealed a $7,500 tax credit for electric vehicles. Separately, the Trump administration earlier this year repealed all climate regulations for cars and trucks, while blocking California's ability to enforce clean car standards that would have encouraged a switch to electric vehicles. Critics say those combined policies could allow Chinese automakers to take market share from the US on the production of electric vehicles. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian Haldia Petrochemicals to lift LPG use at cracker
Indian Haldia Petrochemicals to lift LPG use at cracker
Mumbai, 31 August (Argus) — India's Haldia Petrochemicals (HPL) is looking to raise LPG use at its naphtha cracker in eastern India as it reassesses its feedstock slate following the start of the Iran war, chief executive Navanit Narayan told Argus . HPL is working with US-based technology provider Lummus to assess alternative feedstock options for its 700,000 t/yr naphtha-fed cracker, Narayan said on the sidelines of the Specialty Films and Flexible Packaging Global Summit and Exhibition in Mumbai, held on 26-27 August. US-based TCG is the controlling shareholder of both Lummus and HPL. The LPG share is still being discussed, Narayan said. "We never expected Middle Eastern [supplies] to be squeezed as much as they have been. About 50pc of our feedstock used to come from the wrong side of Hormuz." Middle East crude and product shipments have fallen sharply since the US-Iran war began in February. In 2024, HPL signed a 10-year agreement with QatarEnergy for 2mn t of naphtha supply. The company's trading team in Singapore secured sufficient cargoes from the spot market, with significant volumes sourced from Oman and the UAE, to keep the plant running, chief marketing officer Sanjiv Vasudeva said. HPL's relationships with domestic Indian refiners also helped the firm weather the crisis, he added. But for the longer term, it might be difficult to sustain using alternative naphtha supply sources, Narayan said. If HPL modifies its cracker, it would join several Asian competitors that are rethinking their strategies , including retrofits to improve feedstock flexibility. Rapid petrochemical capacity growth in China has sharpened pricing competition, especially in polyolefins, and squeezed margins for naphtha-based producers. Geopolitical uncertainty, including the Middle East crisis, has added to the pressure and accelerated market share losses for regional players. HPL is a key domestic polyolefins maker, with a combined linear-low density polyethylene (LLDPE) and high-density polyethylene (HDPE) capacity of 720,000t/yr. It also has a polypropylene (PP) production capacity of 340,000t/yr. Investment plans The company is also considering investments at its petrochemical complex in Haldia, in the West Bengal state, as it prepares for the commissioning of a 345,000/215,000 t/yr phenol/acetone plant. HPL expects the plant to be inaugurated in October, with meaningful volumes entering the market by November. "There will be a lot more investments that will follow, of different sizes and different chemicals," Narayan said, without disclosing further details. HPL remains confident about growth in eastern India and is evaluating specialised grades to meet customer needs, he added. HPL is also working with parent TCG on a new project in Cuddalore, Tamil Nadu, although it has yet to decide which products will be made there, Narayan said. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Refinity taps Zeton for plastics-to-olefins demo plant
Refinity taps Zeton for plastics-to-olefins demo plant
Houston, 27 July (Argus) — US plastics recycling technology firm Refinity has chosen Canadian engineering company Zeton to design and build a 10,000 metric tonnes/yr modular plastics-to-olefins demonstration plant. Refinity plans to situate the facility next to a third-party petrochemical steam cracker, allowing olefins made from mixed plastic waste to feed directly into downstream operations. The company's fluidized-bed technology converts mixed plastic waste into light olefins, such as ethylene and propylene, which can be integrated into petrochemical production after the steam-cracking process. The technology can achieve higher plastics-to-olefins yields than routes that first convert plastic waste into pyrolysis oil before steam cracking, according to Refinity. Zeton, based in Oakville, Ontario, specializes in designing and building pilot, demonstration and modular production plants. The company has completed more than 1,000 projects in 45 countries and serves chemical, energy and petrochemical clients. Neither Refinity nor Zeton disclosed the location of the demonstration plant, the project's cost, expected start-up date or the identity of the steam-cracker partner. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
LyondellBasell to shut remaining PP output at Brindisi
LyondellBasell to shut remaining PP output at Brindisi
London, 11 June (Argus) — Petrochemical producer LyondellBasell said it plans to close its remaining polypropylene (PP) production at Brindisi, Italy, by the end of the year, but union sources say that is contingent on it not finding acceptable alternative solutions for the unit. LyondellBasell told Argus that a "challenging macroeconomic environment, persistent uncertainty around feedstock availability, and structurally higher operating and logistics costs have diminished the site's competitiveness and made it increasingly difficult to sustain a viable long-term position". The Brindisi PP unit has a nameplate capacity of 260,000 t/yr. It was the first Spheripol unit, opened in 1982, and mainly produces commodity PP homopolymer grades for packaging. Another PP unit at the site was closed by LyondellBasell in 2024 . The firm does not have upstream propylene production at Brindisi. Feedstock is shipped in by sea from other sites, mainly from Priolo in Italy, adding significant freight costs to its cost position. The site previously received up to 220,000 t/yr of propylene from Eni's Versalis Brindisi cracker before its closure in April last year . "Given Eni's decision on the cracker and the overall crisis in general, the company [LyondellBasell] told us it would be closing the unit at the end of December," said Carlo Perrucci, regional secretary of trade union Uiltec. Perrucci said LyondellBasell had put the PP unit up for sale at a symbolic price, but it would be difficult to find a buyer without the cracker. "Eni told us it has hired JPMorgan to try and find a buyer for its cracking plant," Perrucci said. "If they succeed, it might make LyondellBasell's search for a buyer easier." LyondellBasell said it remains committed to the European market and will continue to meet customer demand through its broader production network. The firm completed the sale of several European assets to a new regional petrochemical and polymer company, Velogy, on 1 May. By Stephen Jewkes and Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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