Road fuels
Overview
Fuels for road transportation continue to drive the refining industry. But gasoline and diesel use is coming under increasing pressure from the introduction of low-carbon targets around the world.
Global oversupply, new regulatory measures and rapidly increasing competition for export markets are affecting refining margins. The need for accurate insight and data is more critical than ever.
Argus road fuels coverage includes price assessments and key insights into conventional fuels — gasoline, middle distillates and blending components — as well as biofuels, in each key region. Our trusted prices are delivered alongside the latest market-moving news, in-depth analysis, supply and demand dynamics, price forecasts and forward curves data.
Latest road fuels news
Browse the latest market moving news on the global road fuels industry.
Borealis not reviewing assets in Europe: CEO
Borealis not reviewing assets in Europe: CEO
London, 12 June (Argus) — Austria-based petrochemicals producer Borealis is not conducting any asset reviews in Europe despite prolonged weakness in the region's polyethylene (PE) and polypropylene (PP) markets, chief executive Stefan Doboczky told Argus . "It's not that we would never look into something," Doboczky said. But "none of our major installations [in Europe] I would say are being a real problem, they are all contributing [to profitability]." Doboczky acknowledged that "Europe will never be the cost leader". But "there are strong differences between the economics of crackers and the polyolefin systems", he said. "If you look at our more coastal setups, we are much more flexible than certain steam crackers would be inland." Borealis' coastal steam crackers in Porvoo, Finland, and in Stenungsund, Sweden, have greater flexibility to run lighter feedstocks and optimise product yields. Their location also allows for easier feedstock procurement via vessel, Doboczky said. Borealis will continue to bring polyolefins into Europe from its sister plants in the Middle East and North America, which have advantageous positions on feedstock and production costs. Doboczky's comments follow Netherlands-based LyondellBasell's announcement last week that it plans to divest four European olefins and polyolefins plants to focus on "economically sustainable sites". The European petrochemicals sector has faced mounting pressure from weak demand and high costs, prompting several producers to review or close assets. Saudi Arabia's Sabic is also understood to be assessing its European footprint, although details remain limited. Borealis, by contrast, is pursuing a differentiation strategy focused on downstream expansion. Last week, it announced a €100mn ($114mn) investment to triple PP foam production capacity at its Burghausen site in Germany. The firm has 650,000 t/yr of PP production capacity at that site. "We are very much focused on investing in smaller units, in the €50mn-100mn space to gain a strong share in a particular niche," Doboczky said. This is in addition to around €2bn of overall capital expenditure already committed in Europe for new projects. "Borealis has no alternative to this [polyolefins] business," Doboczky said, adding that the company will continue to focus on specialty, high-end applications rather than volume-driven segments. It also has a notable presence in the downstream compounding sector, which uses part of its PE and PP resin output. Demand outlook Borealis expects 2025 demand to be broadly in line with 2023-24 levels, although it could vary by grade and segment. "We see too much volatility at the moment and I think we need to see how the world looks like after 9 July," Doboczky said, referring to the 90-day tariff pause on US imports. "The general sentiment that PP is even more difficult, I would subscribe to that." PP demand has been hit harder than PE, given its exposure to big-ticket consumer goods and the automotive segment, both of which have been affected by cost-of-living pressures. Construction demand is also under pressure due to economic headwinds and high financing costs. For the time being, Borealis continues to see offtake from the automotive segment within its expected range, owing to a larger share of electric vehicle production, which uses a higher proportion of PP to offset battery weight. The company is also targeting growth in rigid and flexible packaging through increased innovation. Project updates Earlier this year, OMV and Adnoc agreed to merge Borealis and Borouge into a new entity, Borouge Group International, which will be headquartered in Vienna and listed on the Abu Dhabi Securities Exchange. The move coincided with the acquisition of Canada-based Nova Chemicals by the new entity. Borealis is constructing a 750,000 t/yr propane dehydrogenation (PDH) plant in Kallo, Belgium, which is scheduled to come online in the second quarter of 2026. The Borouge 4 project in Abu Dhabi is on track to start up ethylene and PE production in late 2025 or early 2026, Doboczky said. By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ice gasoil backwardation widens as supply tightens
Ice gasoil backwardation widens as supply tightens
London, 12 June (Argus) — The premium of front-month Ice gasoil futures against the second-month futures has widened over the past two weeks, reflecting tighter supply. The premium of Ice June futures against the July contract settled at $9.50/t on Wednesday, 11 June. The backwardation — where prompt prices are greater than forward prices — has steepened in the past two weeks, peaking at a premium of $16/t on Tuesday, 10 June, the joint-widest in 14 months along with 11 March. Two weeks ago, on 23 May, the premium settled at $6.50/t. The June contract expires today, which could have contributed to the steepening backwardation as traders close their open positions, according to market participants. But the size of the premium suggests a tightening market. A closed arbitrage from the Mideast Gulf and India since April has reduced supply to Europe, European traders have said. Only 2.97mn t of diesel and other gasoil has arrived in Europe from the Mideast Gulf and India in April and May, according to ship-tracking service Vortexa, compared with about 5.72mn t in the same period last year. The arbitrage has been closed because of relative weakness in European prices compared with those in Singapore. The premium of front-month Ice gasoil futures against Singaporean equivalents averaged $18.65/t in May, compared with $23.81/t in May 2024. Singaporean middle distillate stocks fell to a nine-month low in the week ending 23 April, increasing demand for imports. European diesel values fell sharply at the start of April in response to the implementation of US tariffs, largely because of dampened expectations of industrial performance, and have not recovered. The start of the Mediterranean emissions control area (ECA) at the start of May has also placed strain on European supply of diesel and other gasoil. The ECA requires ships in the Mediterranean to use fuel with a sulphur content of 0.1pc, rather than the previous requirement of 0.5pc. Marine gasoil (MGO) fits the new requirement, as does ultra-low sulphur fuel oil (ULSFO). With supply of the latter limited in Europe, the majority of shipowners have switched to MGO. Refineries have probably increased MGO production to meet this new demand, but MGO supply is still "very tight" , a Mediterranean-based marine fuels trader said. Most of the gasoil used for blending in MGO is suitable for desulphurisation and use as road fuel, and so it diversion into marine fuels restricts supply of diesel. Independently-held inventories of diesel and other gasoil at the Amsterdam-Rotterdam-Antwerp (ARA) hub have dropped since the start of April. The four-week average came to about 2.1mn t on 5 June, lower on the year by 8.5pc, according to consultancy Insights Global. On 3 April the four-week average was 5.1pc higher than a year earlier. A recovery in Rhine river water levels in recent weeks , after lows that restricted barge movement inland from ARA, contributed to the stockdraw. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Brazil inflation eases to 5.32pc in May
Brazil inflation eases to 5.32pc in May
Sao Paulo, 10 June (Argus) — Brazil's inflation slowed to an annual 5.32pc in May, snapping a three-month upswing since February, according to government statistics agency IBGE. The country's annualized inflation slowed from 5.53pc in April but was up from 4.56pc in January. Shelter costs, which include utilities, posted the largest gain in May, rising to an annual 4.53pc from 4pc in April. The acceleration took place thanks to a federal increase in power tariffs last month because of dry weather hampering hydroelectric power generation, which is Brazil's main power source. Transportation costs decelerated to 4.64pc in May from 5.49pc in April, in part driven by an annualized 13.16pc contraction in airplane tickets. Motor fuels also decelerated to 7.95pc in May from a 9.23pc gain in the month prior. Gasoline, ethanol, diesel and compressed natural gas (CNG) prices all fell in May, following some readjustments by state-controlled Petrobras . Food and beverage costs slowed to an annual 7.33pc in May from 7.81pc in April. Soybean oil prices eased to 21.1pc from 22.83pc. Brazil's monthly inflation slowed to 0.26pc in May from 0.43pc in April. That is the third monthly decline and the lowest rate since January. The country's decelerating inflation is partially thanks to the central bank's course of tightening, hiking its target rate to 14.75pc in early May. That was the sixth increase in a row since September, aimed at cooling the economy and boosting the real currency following sharp depreciation last year. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Jones Act rates unaffected by Trump ship talk
Jones Act rates unaffected by Trump ship talk
New York, 6 June (Argus) — Freight rates for the Jones Act fleet of US-built and crewed vessels that transport oil and other liquids between US ports have responded little to US government shakeups in 2025. The rate for a Houston, Texas-Port Everglades, Florida voyage on a Jones Act medium range (MR) tanker dropped by 8¢/bl to $3.29/bl between 3 January and 30 May per Argus assessments, down by only 2.3pc in that time despite US president Donald Trump's February announcement to bolster US shipbuilding . Trump has expressed a desire to boost US shipbuilding, while shorter-term remedies to an aging US-flagged fleet could come in the form of converting foreign-flagged vessels rather than building new ships domestically . The cost to build an MR tanker at a US shipyard is about $210mn,compared with $50mn to build the same vessel in South Korea, according to Macquarie Bank. Vessels re-flagged in the US are eligible for US government contracts, such as Military Sealift Command loadings, alongside other support programs extended by the US to vessels flying its flag. But they do not meet all the requirements to join the Jones Act fleet shipping between US ports, specifically the US-built requirement. A lack of newbuilding activity has helped keep $/d rates elevated for the less than 50 Jones Act MR tankers that are typically under multi-year time charter contracts. Jones Act $/d rates have remained rangebound since the start of the year between $86,000/d and $91,000/d per Argus assessments, an order of magnitude higher than the $8,952/d averaged by internationally flagged MR tankers carrying refined products like diesel from the US Gulf coast to Pozos, Colombia in the same period. Most of the downward pressure on Jones Act rates in 2025 likely came from declining crude prices amid roiling market uncertainty surrounding on-again and off-again US tariffs. The response from shippers involved with the Jones Act fleet has been "more skepticism rather than optimism" and there had not been "any serious reaction by the market to the administrative initiatives", according to a Jones Act shipowner. "There has been a push to ease the re-flagging of foreign built vessels into the US flag fleet, but of course these will not be Jones Act vessels and their introduction to US flag does not benefit the domestic shipyards which is the co-ultimate target, that and labor," the contact told Argus . "The shortage of US mariners is, of course, another important issue as well that will have to be wrestled with." By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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