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.
European naphtha pricing in Red Sea disruption risk
European naphtha pricing in Red Sea disruption risk
London, 22 July (Argus) — European naphtha market participants are increasingly pricing in the risk of disruptions in the Bab el-Mandeb strait, although market participants said the Yemen-based Houthi militant group's threat to Saudi shipping is yet to result in meaningful changes to physical cargo flows. The east-west naphtha swap spread was $72.75/t on 21 July, wider by $18/t on the day and by $30/t on the week, with heightened concern about supply to destinations east of Suez. The possibility of Red Sea disruption comes as Russian naphtha exports are in decline and Chinese buying interest shows signs of improvement. Naphtha exports through Bab el-Mandeb averaged around 388,000t/month in the past two months, roughly double the 2025 monthly average. A trader active in west-to-east naphtha arbitrage trade told Argus that at least one cargo was recently fixed from Europe to Asia via the Suez Canal, providing an early test of shipowners' willingness to continue using the route. The trader said some owners have suspended Red Sea transits, and others are waiting to see how the Houthis will enforce any restrictions. The group has said it will only target vessels carrying Saudi cargo, or that have left or are heading to Saudi ports. The uncertainty has started to affect trading behaviour. A European naphtha broker said liquidity is weakening, with market participants becoming cautious about committing supply until the implications for Asian buying requirements become clearer. "Traders will buy and sell less volume as the market becomes more volatile," the broker said. "There will be less liquidity in the market overall." An Asia-based light-ends analyst said balances "are gradually tightening", with supply risks outweighing concerns about demand. Cargoes can be rerouted around the Cape of Good Hope if the Red Sea situation worsens. But doing so would substantially increase freight costs and voyage times, raising the cost of supplying Asia-Pacific buyers. Argus estimates sending a Long Range 2 (LR2) tanker from the Mediterranean to Japan around south Africa would add around 19 days to the journey and nearly $600,000 to the fuel bill at current prices. Market participants said the naphtha east-west spread may need to widen significantly further before long-haul Cape routing becomes routinely economic. The light-ends analyst estimated the spread may need to approach $80/t, depending on freight costs. Russian exports are likely to fall because of refinery disruptions, while restrictions on gasoline exports could divert additional naphtha into domestic blending, limiting global availability. By Jide Tijani and John Ollett Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Houthi threat could support European MR rates
Houthi threat could support European MR rates
London, 21 July (Argus) — Rates for Medium Range (MR) clean product tankers could face competing drivers in the coming weeks, as possible disruption around the Bab el-Mandeb strait at the southern entrance to the Red Sea could force vessels onto longer routes, while tighter European gasoline balances reduce export volumes. Yemen's Iran-backed Houthi militant group has announced a ban on Saudi Arabian "maritime navigation", although the scope of the restrictions remains unclear. Saudi diesel exports from Red Sea ports have become an important source of supply for Europe since March. More than 2mn t/month has loaded from Saudi Red Sea terminals, with around one-third heading to Europe, according to Vortexa. Any disruption to traffic through the Bab el-Mandeb strait could increase the share of Saudi diesel exports heading to Europe, as cargoes destined for Asia may face longer and costlier routes. Cargoes moving west from Saudi Arabia's Red Sea coast can still reach Europe through the Suez Canal, while eastbound shipments would likely be diverted around the Cape of Good Hope. The longer voyages would increase demand for both MR and long range (LR) tankers, supporting freight rates. At least five tankers heading to or from Saudi Arabian Red Sea ports appeared to have turned around today, although an India-origin clean product tanker passed through unharmed. The Houthis have not carried out any strikes on shipping since announcing the ban, and the situation is still developing. If attacks start, shipowners sailing from Indian or other non-Saudi ports may become more reluctant to use the Bab el-Mandeb strait. The Houthis have previously widened their target list after initial attacks. A diversion around the Cape of Good Hope for a west coast India-Rotterdam voyage would add around 15 days. An LR2 tanker burns around 40t/d of bunker fuel and costs around $30,000/d to charter, implying additional costs of at least $800,000, or around $8.85/t. But it is unclear if the ban will target only Saudi-linked vessels or wider commercial traffic. Other vessels transiting the Bab el-Mandeb strait may not face Houthi attacks if they are not linked to Saudi Arabia, one additional war risk premium (AWRP) insurance broker told Argus today. The Houthis have said only Saudi maritime traffic is in their crosshairs, suggesting cargoes not originating in or heading to Saudi Arabia may avoid any aggression, the broker said. AWRPs are currently around 0.2pc for cargoes and 0.5pc for hulls operating between the Eritrean border and the Saudi port of Jizan, the broker said. AWRP cover does not apply to other Saudi ports north of Jizan, they added. Premiums are expected to rise, but remain well below those for transiting the strait of Hormuz because of the greater threat posed by Iranian strikes on vessels. "One's a kitten and one's a tiger," the broker said. The European MR market has been under pressure in recent weeks. Competition from Brazilian buyers for US Gulf cargoes, weak US Gulf-Europe transport economics and reduced diesel export availability have weighed on cargo volumes and pushed MRs towards shorter-haul trades. Tighter gasoline balances could also limit support for MR rates. Strong seasonal demand and falling inventories have tightened Europe's gasoline market. If refiners prioritise domestic supply over exports, freight demand could weaken and offset some of the support from longer Red Sea-Europe diesel flows. The UK Continent-US Atlantic coast MR rate fell to WS130 ($21.53/t) on 21 July, its lowest since 7 July, while the west Africa route dropped to WS180 ($34.60/t), also its lowest since 7 July. Both remain well below their peaks of WS317.5 ($52.58/t) and WS445 ($85.53/t) reached on 10 April, just over a month after the outbreak of the US-Iran war on 28 February. By Erika Tsirikou and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil’s inflation slows to 4.64pc in June
Brazil’s inflation slows to 4.64pc in June
Sao Paulo, 10 July (Argus) — Brazil's inflation slowed to an annual 4.64pc in June, with lower motor fuel prices helping offset higher electricity bills. The consumer price index IPCA decelerated from 4.72pc in May , national statistics agency IBGE said on Friday, after accelerating from 4.39pc in April. Housing costs, appointed as the largest contributors to the monthly gain in the index in June, decelerated to 5.85pc from 6.22pc a month earlier, mostly thanks to electricity bills and tax readjustments for power supply in some southern states. Food and beverage costs, which weigh heavily on the index, contributed the most with the monthly decrease in the IPCA, decelerating to an annual 3.82pc in June from 3.87pc in May. Lower prices for coffee, fruits and meat drove the result, IBGE said. Transport costs slowed to 3.95pc in the month from 4.05pc in May. Lower prices for ethanol, diesel, gasoline and compressed natural gas (CNG) weighed on motor fuel costs, despite an increase in airfares. The annual gain for June was down from 5.35pc in June 2025. Inflation expectations, as calculated by the central bank's Focus survey, remain above target at 5.3pc for 2026 and recently ticked up to 4.18pc for 2027. Brazil's central bank lowered its target rate to 14.25pc in June. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European refinery economics shift back to road fuels
European refinery economics shift back to road fuels
London, 9 July (Argus) — European refinery economics are shifting back towards road fuels as diesel and gasoline markets tighten and concerns over jet fuel supply ease. Market participants expect the shift to encourage refiners to dial back some of the jet fuel production increases made earlier in the US-Iran war in favour of diesel and gasoline. European refiners boosted jet fuel production in March-June as concerns over supply pushed jet fuel margins above $100/bl. But tightening road fuel markets and softer jet fuel fundamentals are beginning to reverse that trend. European diesel and gasoline values have strengthened in recent weeks. Diesel cracks are around $70/bl , their highest in three months, while gasoline cracks are at four-year highs of around $40/bl. In contrast, jet cracks have fallen to around $60/bl. Russia, the world's second-largest diesel exporter, announced a ban on diesel exports on 8 July , raising the prospect of tighter global supply. Europe will now face greater competition for remaining diesel cargoes, as Turkey and buyers in north Africa seek to replace Russian supplies. The US could help fill some of Europe's diesel shortfall, although Europe will face competition from Brazil for US cargoes. Diesel has priced above jet fuel for the past three weeks, after moving above jet for the first time this year . Argus Consulting expects the spread to remain in diesel's favour over the coming months. Meanwhile, gasoline demand has picked up in Europe in recent weeks, especially in the Mediterranean and Germany, traders said. Export demand from Europe's secondary markets has also firmed, and shipments to Brazil, Canada, Egypt, Libya and Syria are expected to rise sharply in July. Market participants said demand is outstripping availability. Refiners have increased blending activity in recent weeks, drawing down blending component stocks. Naphtha prices have rallied, supported by demand from gasoline blenders and petrochemical buyers, lifting naphtha cracks to a 10-year high. Jet fuel prices remain supported by strength across the wider middle distillate complex, but jet fundamentals look softer. Europe has coped with the loss of Middle Eastern flows and supply concerns have eased. European jet fuel imports hit an eight-month high in June , supported by record US and Nigerian deliveries. More jet fuel from east of Suez is due to arrive in Europe this month, while Chinese jet fuel exports are set to increase , supporting global balances. Spain's Repsol has already begun prioritising diesel and gasoline production after previously boosting jet fuel output. Refiners can typically shift a portion of output between kerosine and gasoil pools. Refining margins for secondary units have strengthened at the same time. Margins for an average hydrocracker, producing diesel and gasoline at a 70:30 ratio, rose to a $30.46/bl premium to Ice Brent crude earlier this week, Argus calculations show. Margins for a typical fluid catalytic cracker (FCC), producing gasoline and diesel at a 70:30 ratio, rose to a $23.42/bl premium. Both margins were trading at discounts to crude in early June. Heavier naphtha-grade material will probably return to the gasoline blending pool instead of the kerosine pool, according to one market analyst. Some refiners had been taking larger kerosine cuts from petrochemical units , but this has probably also decreased now. A pivot away from jet fuel output could leave the market exposed if supply tightens again. European jet fuel inventories remain heavily depleted and will probably not rebuild until the new year, according to Argus Consulting, leaving little cushion if supply gaps re-emerge. By Amaar Khan and Atishya Nayak Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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