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 FCC margins flip back to premiums
European FCC margins flip back to premiums
London, 9 June (Argus) — Northwest European fluid catalytic cracking (FCC) margins have returned to a premium after a rare few sessions of negativity. FCC margins — calculated as a 70:30 ratio between gasoline and diesel refining margins adjusting for delivered northwest Europe low-sulphur vacuum gasoil (VGO) differentials to crude prices — were a $3.59/bl premium at the close on Monday, 8 June, the highest since 1 May and compared with rare discounts , of around $10/bl, in the last week of May. The shift is important at the start of the European summer driving season. Blending indicators have been relatively profitable in Europe, with the gasoline-naphtha spread at $264.35/t at the last close. Paper market participants have pointed to increased buying interest for the paper 'gas-nap' contract since mid-May, with trades reported around $240-270/t. The wider spread, along with good export interest from US, have supported gasoline blending activity even with low FCC margins. A European trader said the transatlantic arbitrage appeared to narrow in recent sessions, suggesting a slowdown in exports to the US in the coming weeks. This may hamper the need to blend gasoline. But demand in the Mediterranean region has picked up, an analyst said, especially in France because of refinery maintenance works. A rise in European demand may partially account for waning export interest. VGO premiums against the Ice August Brent crude futures contract narrowed to a $28/bl premium, from a record high $40.50/bl on 26 May. Supply tightness has eased slightly, with two VGO cargo arrivals from Saudi Arabia last week. Narrowing VGO premiums have also supported hydrocracker margins this week, which recovered to a $13.35/bl premium on 8 June from a 41¢/bl discount on 26 May. European refiners have prioritised diesel and jet fuel yields in recent months as the European middle distillate markets have lost a significant share of imports from east of Suez. A large share of available VGO has, hence, been almost entirely redirected to the diesel pool for hydrocracker utilisation. An estimated 15pc of European diesel imports have been hindered due to the US-Iran war. Refiners are likely to continue increasing diesel yields, which may further cut into VGO availability for FCCs, despite the rise in margins. By Atishya Nayak Secondary unit margins $/bl Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Panama Canal sees El Nino slowing transits next year
Panama Canal sees El Nino slowing transits next year
New York, 4 June (Argus) — The Panama Canal Authority (ACP) does not anticipate the expected 2026 El Nino weather phenomenon to materially impact vessel transits at the Panama Canal through the end of the year, but it could create the need for water-saving measures in 2027, according to an update it shared in late May. The same weather pattern was responsible for the 2023/2024 drought that encouraged the ACP to enact draft restrictions from early 2023 that severely reduced transits via the freshwater canal. This ultimately shifted the Panama Canal from its traditional first-come, first-serve basis to its current pre-booked transit slot/supplemental auctions model. But the timeline in 2026 is dissimilar to 2023, a year in which the ACP had already enacted its first draft restrictions by 1 March 2023. These were focused on the largest and newest of the transit locks that lift vessels from the lower sea level into the higher freshwater canal, the Neopanamax locks. Draft restrictions mean vessels need to carry less cargo to sit higher in the water, allowing the ACP to further retain freshwater within the waterway overall. The draft restrictions for these larger vessels steadily increased that year as freshwater levels there steadily declined. But focusing on restricting larger vessels ultimately allowed the ACP to avoid restricting draft for the smaller vessels via the Panamax locks that make up 70pc of all transits via the Panama Canal. That retention of freshwater is important during droughts, because the man-made Panama Canal itself is responsible for providing over 50pc of the country's population with potable water, according to the ACP. The ACP reevaluated its operational capacity at the start of the rainy season, which typically begins in May, lasts through June and replenishes steadily declining water levels during the dry season. "Current data does not forecast the need for transit restrictions through 31 December 2026", the ACP said. "History indicates that the most pronounced impacts of moderate or strong El Nino events tend to be reflected more clearly in the subsequent year. Accordingly, operational projects for 2027 are already being developed." The ACP highlighted four water-saving measures that had contributed to higher average water levels in the man-made lakes, Gatun and Alhajuela, that feed the freshwater canal enacted in December 2025 alongside a dry season that was "the wettest on record since 1950". These included doubling up on small ships into a single lane when raising them from sea level, use of water-saving basins via the larger Neopanamax locks to effectively recycle some water from exits that would otherwise drain out to the sea, utilizing "interior gates" within the lanes of the locks for vessels smaller than the total size of those lanes to raise efficiency of water usage and the temporary suspension of hydroelectric power generation at Gatun lake, according to the ACP. El Nino? Or 'El Hombre' The severity of weather phenomena like El Nino are famously difficult to predict with accuracy, and the 2026 El Nino weather event, if it does occur, could be on par with the 2023 event or even stronger, according to World Meteorological Association (WMO) and the National Oceanic and Atmospheric Administration (NOAA) data. The WMO estimates an 80pc chance of El Nino developing between June-August 2026, with "near or above" a 90pc chance of persisting until at least November. "Although some uncertainty remains about El Nino peak strength and timing, most forecast models suggest it will be at least moderate — and possibly strong," the WMO said. Meanwhile, the NOAA projected in May 2026 that between November, December and January the El Nino had a 37pc chance of hitting "very strong", the highest strength level assessed for the weather pattern. This marked the plurality of all options, with the next highest being "strong" at 30pc probability. The WMO had previously described the 2023-2024 El Nino as peaking at "one of the five strongest on record". A return to this level of severity could upend plans by the ACP of avoiding draft restrictions at the Panama Canal through the remainder of 2026, which would have knock-on effects on shifted global trade patterns. Asian buyers have increasingly relied on Atlantic basin supply, and Panama Canal transits, for energy commodities in the wake of the closure of the strait of Hormuz by Iran. Disrupted Panama Canal transits will create strong upward pressure on freight rates across segments, especially if Mideast Gulf flows remain largely cut-off from the global market when drought again grips Central America. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Ampol to acquire fuel retailer EG Australia
Ampol to acquire fuel retailer EG Australia
Sydney, 3 June (Argus) — Australia's refiner and retailer Ampol has received regulatory approval from the country's competition regulator to acquire UK-owned EG Australia in a cash-settled deal worth A$1.1bn ($780mn), it said today. The Australian Competition and Consumer Commission (ACCC) will allow the deal to proceed if Ampol divests 41 EG Australia fuel stations. The regulator has approved Dib Group, trading as Metro Petroleum, as the purchaser of these divestment sites. The acquisition is expected to be completed on 30 June, subject to final regulatory requirements. The regulator previously identified 115 EG fuel stations where the deal would raise competition concerns across Brisbane, Melbourne, Sydney and Canberra, where Ampol's post-acquisition market share would have reached 21pc, 19pc, 20pc and 31pc respectively. Ampol had earlier planned to divest 19 retail fuel stations , but this was deemed insufficient to offset competition concerns. Ampol expects the acquisition to generate targeted synergies of A$65mn-80mn per year and said the deal will strengthen its retail network and expand its higher-margin fuel and convenience business. Total fuel sales volumes reached around 428,000 b/d in January–March, broadly stable compared with 6.14bn litres in the same quarter a year earlier, with retail volumes broadly unchanged while wholesale demand softened. EFA support and MSO limitations The approval comes as Ampol has been drawn into Australia's broader fuel security response following the outbreak of the US-Iran war in late February. Government agency Export Finance Australia (EFA) first partnered with Ampol and Viva Energy in early April to underwrite spot-market fuel and crude oil purchases, enabling both refiners to secure cargoes that would otherwise be considered uncommercial due to volatile prices and high spot-market costs. Under the scheme, the government retains the ability to prioritise regions facing tighter supply. EFA has since expanded beyond Ampol and Viva Energy to include smaller, regionally focused operators IOR and Park Fuels. At the same time, Australia's minimum stockholding obligation (MSO) framework has not addressed access to fuel in regional areas. The MSO, which compels major importers to hold fuel stocks based on typical daily consumption, covers a limited group of large companies and does not extend to independent wholesalers that supply rural transport and farm businesses. These wholesalers have reported being unable to secure uncontracted supplies that are usually accessible, following the onset of the US-Iran conflict. By Lawrence Wen and Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s petchem supply to last beyond fiscal year: PM
Japan’s petchem supply to last beyond fiscal year: PM
Tokyo, 3 June (Argus) — Japan can maintain supply of its petroleum products, including naphtha-derived chemical products, beyond the current fiscal year that ends in March 2027, prime minister Sanae Takaichi said on 2 June. Takaichi had already declared that Japan can secure stable oil supply beyond March 2027 , but supply of naphtha-derived products had previously been secured only through to the end of this year. Her latest statement extends that outlook. The outlook reflects the ongoing recovery in Japan's naphtha procurement, which has currently risen to around 85pc of normal levels, supported by both domestic refining and alternative imports from regions outside the Middle East. Japan has also boosted imports of intermediates, which has helped limit drawdowns of intermediate stocks in April, Takaichi said. Manufacturers of midstream products such as polyethylene, as well as downstream products — including paints and thinners, polyvinyl chloride (PVC) pipes and insulation materials — have reported that their supply performance up until April has been at the same level as or higher than in the previous year, Takaichi said, adding that they also expect to continue supply going forward. But inventories in the supply chain for paints and thinners remain relatively low. In response, in addition to petrochemical firms' supply and trading firms' imports, refiners will directly supply feedstocks such as toluene and xylene to paint and thinner manufacturers, enabling supply of up to 1.8 times the usual level of demand, according to the government. This arrangement follows domestic distribution bottlenecks for paints and thinners. Because of disruptions to shipments from the Middle East stemming from the US-Iran war, Japan's naphtha imports fell to 710,000t in April , down by 46pc from a year earlier, based on preliminary finance ministry data. Imports in May and June are expected to exceed the April level, supported by efforts to increase alternative imports from the US and other regions outside the Middle East. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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