South Korea's gasoline export volume rose by 8pc and 14pc respectively on the month and year in June likely as a result of an increase in export volumes to Japan and the Philippines.
South Korea's gasoline export volume rose to 326,000 b/d in June, according to Global Trade Tracker (GTT) customs data. The rise was driven by an increase in export volumes to Japan and the Philippines, which rose by around 30pc and 80pc respectively on the month in line with a lower refinery run rate in Japan and a gasoline-production unit issue in the Philippines.
Japan's refinery run rates averaged at around 66.26pc in June compared with 70.04pc a month earlier because of a series of planned and unplanned refinery shutdowns in Japan, which has increased Japan's import requirements. Philippine private-sector refiner Petron, the sole refiner in the country, also emerged to buy a very-prompt-loading gasoline cargo because of a minor issue at its Bataan refinery, said market participants. The refiner may have bought around 150,000 bl of non-oxygenated gasoline for first-half June loading, said traders.
Gasoline exports from South Korea to the Philippines rose to a record high of 292,000t in June 2025, the highest level since records began in January 2017 and more than 33pc higher than the second-highest volume exported from South Korea to the Philippines, according to ship tracking data from Kpler. This was echoed by fellow ship tracking firm Vortexa, which shows that South Korean gasoline exports to the Philippines rose to 256,000t in June 2025, more than two times the volume a month earlier.
Singapore bore the brunt of the shift in trade flows and export volumes from South Korea to the city state fell by 43pc on the month to 50,000 b/d, which, together with factors such as a tighter Mideast Gulf market and regional refinery issues, contributed to the strong gasoline crack spreads in June. Crack spreads averaged at $10.35/bl in June compared with $5.18/bl in June 2024.
Continued support
South Korea's average monthly gasoline export volumes have been above the five-year high for the first half of 2025 on the back of the increase in blending activity as traders move to take up oil storage tanks in South Korea. This came after the Korea Customs Service and the country's National Tax Service in January improved their systems to allow domestic refineries to obtain immediate funds on custom duties, value-added tax and import levies when oil products are exported to the bonded zone, allowing international traders to use oil products from domestic refineries for blending, according to the country's trade, industry and energy ministry (Motie).
The earlier uptick in demand for gasoline cargoes from South Korea to Japan and the Philippines contributed to the tighter Asian market, but sentiment has since softened because of an influx of African gasoline cargoes into Asia and increased supplies from China.
Looking ahead, the market is watching Japanese refinery runs in August. Continued buying interest on the back of more off line refinery capacity could draw more South Korean exports into the country. Australian refiner and fuel marketer Viva Energy is also expected to begin a scheduled turnaround at its 128,000 b/d Geelong refinery in Victoria in August, which could also support South Korean gasoline exports.
