Road fuels
Overview
Fuels for road transportation continue to drive the refining industry. But gasoline and diesel are coming under increasing pressure from low-carbon targets being implemented 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 both conventional fuels - gasoline, 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.
Iran's gasoline demand outpaces production
Iran's gasoline demand outpaces production
Dubai, 18 March (Argus) — Iran may have to resort to importing gasoline again as consumption has been outpacing domestic refinery production. Iran is gearing up for a spike in gasoline consumption during the two-week holiday period to celebrate the Iranian new year, or Nowruz, which starts on 20 March. Iranians typically travel across country to celebrate with friends and family, boosting already strong gasoline demand. State-owned refiner NIORDC said it expects gasoline demand to exceed 120mn litres/d (754,000 b/d) over the Nowruz period. "In the past few days, due to the beginning of Nowruz trips, the consumption figure of 133mn litres of gasoline was recorded in one day," NIORDC managing director Jalil Salari said, according to state news agency Shana. This is higher than the previous daily record of 127mn l set during the holiday season in March last year and higher than Iran's total gasoline output, which Salari said last year was 110mn l/d. "More than a million cars are supplied every year, and no cars are scrapped. If this trend continues, we will reach a shortage of gasoline and become an importer," Salari said last year. When Iran's flagship 360,000 b/d Persian Gulf Star (PGS) condensate splitter reached full capacity in February 2019, it was meant to help meet Iran's gasoline demand and turn the country into a net gasoline exporter. Each of the three 120,000 b/d phases of the splitter has a capacity to produce 12mn l/d of Euro IV grade gasoline. Plans to add a fourth and final 120,000 b/d phase had been shelved, with debottlenecking of the existing three trains adding 40,000 b/d of processing capacity. But the surge in demand prompted Tehran to revive the pIan and start construction of the fourth train towards the end of 2022. The new train's distillation system will be online "by the end of 2025", according to consultacy FGE. "We project the isomerisation and continuous catalytic reformer units will then come online in 2027. We expect that following the commissioning of the fourth train, PGS' intake will likely increase to 500,000 b/d as the utilisation of the existing trains will be reduced toward their original loads," said FGE's managing director for the Middle East Iman Nasseri. Iran has also partially revived the 480,000 b/d Siraf splitter project in Assaluyeh in the south of the country. "Iran is building a 60,000 b/d condensate splitter there, so-called South Adish refinery, the only part of the shelved Siraf project which was due to have eight 60,000 b/d splitters," Nasseri said. FGE expects the project to come online by 2025. Holiday distribution Iranian officials have to deal with the more pressing task of organising fuel distribution over the holiday period. NIORDC has sent 100 teams around the country to monitor gasoline distribution, which will remain a challenge even after the holiday period. Plans for optimal management of fuel consumption in Iran "have entered an emergency stage otherwise proper distribution of energy in the country will not be possible", Shana warned previously. Widespread smuggling of gasoline to neighbouring countries, where prices are higher, has exacerbated the issue. Gasoline is heavily subsidised in Iran, helping to keep consumption at elevated levels for many years and putting pressure on local refineries to raise production. Given the challenge of importing gasoline while US sanctions are in place, Iran has been looking for alternatives, such as the use of compressed natural gas as a motor fuel. Plans to expand the country's existing 2.29mn b/d of refining capacity are likely to take time because sanctions have hindered Iran's ability to implement refinery upgrades. By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oman's naphtha exports up in Feb as Duqm hits capacity
Oman's naphtha exports up in Feb as Duqm hits capacity
Dubai, 14 March (Argus) — Oman's naphtha exports rose to at least an eight-year high in February, with rising supplies from the new 230,000 b/d Duqm refinery. Exports rose to 299,000t in February, preliminary data from oil analytics firm Vortexa show, the highest for any month on records that go back to 2016. The $9bn Duqm refinery reached full capacity in February, after starting production in mid-2023. Duqm began shipping out naphtha in June, with exports on an upward trend since then. The plant, operated by OQ8 — a 50:50 joint venture between Omani and Kuwaiti state-owned firms OQ and KPI — has boosted Oman's refining capacity to above 500,000 b/d. South Korean refiners like GS Caltex and Hanwha TotalEnergies (HTC) are typical buyers of full-range naphtha from Duqm because the grade is a "natural fit" for their splitters, a Dubai-based trader said. South Korean customers emerged as the dominant buyer of Omani naphtha in February, accounting for around 64pc of total exports, followed by Malaysia and Singapore at 23pc and 12pc respectively. More naphtha is likely to move to South Korea in March as cracker operators are on course to raise run rates, market sources said. But Oman's exports could fall once the Duqm Petrochemical Project (DPP), which has a 1.6mn t/yr ethylene mixed-feed steam cracker, is integrated with the Duqm refinery. At full capacity, the refinery will be able to produce 130,000 b/d of diesel, 61,000 b/d of naphtha, 22,000 b/d of jet fuel and 15,000 b/d of LPG. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Demanda de gasolina premium en México va en aumento
Demanda de gasolina premium en México va en aumento
Mexico City, 11 March (Argus) — La gasolina premium de 92 octanos en México ha experimentado un aumento inusual de demanda recientemente, como resultado de un diferencial de precios más estrecho respecto a la gasolina regular de 87 octanos y a un aumento de ventas de autos nuevos. Las ventas de gasolina premium de la empresa estatal mexicana Pemex aumentaron 12pc en enero para ubicarse en 129,400 b/d, comparado a 115,400 b/d del mismo mes de 2023, según datos de la misma empresa. Las ventas de gasolina premium de Pemex también superaron las ventas de gasolina regular en enero, las cuales se redujeron en 2pc a 501,600 b/d, por debajo de los 509,400 b/d del año anterior, según datos de Pemex. La empresa estatal tiene una participación de más de 86pc en el mercado de gasolinas de México. En enero, el diferencial de precios de venta al público entre la gasolina magna, como también se le conoce a la gasolina regular en México, y la gasolina premium fue más estrecho que en el mismo mes de 2023, lo que probablemente contribuyó al aumento de las ventas de gasolina premium. En promedio, la gasolina premium a nivel nacional costaba Ps24.21/l ($5.26/USG) en enero, un diferencial de Ps1.9/l por encima del precio de la gasolina magna de Ps22.31/l, pero aún por debajo de un diferencial de Ps2.29/l en el mismo mes del año pasado cuando la gasolina premium promediaba Ps24.05/l y la magna Ps21.76/l, según un análisis de Argus de los precios reportados por la Comisión Reguladora de Energía (CRE). El impuesto especial sobre producción y servicios (IEPS) también fue un factor que incidió en el aumento de las ventas de gasolina premium en enero, ya que la Secretaría de Hacienda no otorgó subsidios al impuesto sobre la gasolina regular y premium durante ese mes. La gasolina premium tiene un IEPS más bajo al ser considerada menos contaminante. Para 2024, el gobierno mexicano estableció un IEPS de Ps6.1752/l para gasolina regular y de Ps5.2146/l para gasolina premium. Pero el diferencial entre ambas gasolinas se redujo aún más a Ps1.61/l en febrero, a pesar de que el gobierno restableció las deducciones para la gasolina regular. La Secretaría de Hacienda dejó de subsidiar la gasolina premium en octubre. Desde entonces, las ventas de gasolina premium han aumentado en ciertas regiones, probablemente impulsadas por el aumento de las ventas de autos nuevos en México, un gasolinero con estaciones en el centro y norte de México dijo a Argus . Las ventas de gasolina premium de Pemex probablemente también aumentaron en febrero, ya que los autotanques de esta empresa transportaron alrededor de 5pc más de cargamentos de gasolina premium que el año pasado, dijo un transportista a Argus . Pemex reportará sus resultados de ventas de febrero el 26 de marzo. Enfoque híbrido Las ventas de vehículos nuevos en México aumentaron 11pc a 113,258 vehículos en febrero comparadas con el mismo mes del año anterior y fueron 19pc más altas en enero en comparación 2023, según datos del Instituto Nacional de Estadística y Geografía (Inegi) publicados el 6 de marzo. El aumento de las ventas de autos nuevos ha sido respaldado por la entrada de marcas chinas en el mercado mexicano, ofreciendo precios competitivos, según fuentes del mercado. Las ventas de automóviles chinos en México aumentaron 63pc a 129,329 autos en 2023 contra el año pasado, según los datos de Inegi. El tipo de autos vendidos también influye en el consumo de combustible, y el aumento de las ventas de vehículos híbridos (HEV) podría incrementar aún más la demanda de gasolina premium, comentaron las mismas fuentes. Las ventas de HEV crecieron 32pc a 53,857 autos en 2023, comparado con 40,859 vendidos en 2022, de acuerdo a los datos más recientes de Inegi. Aunque los HEV siguen siendo un mercado pequeño en México, representando alrededor de 4pc de las ventas totales, la demanda por estos autos está aumentando en ciertas regiones, con listas de espera de más de seis meses para comprar algunos modelos, comentó a Argus un concesionario de automóviles. Actualmente, la venta de HEV se concentra en Ciudad de México, Jalisco, Nuevo León y el estado de México representando más de la mitad de las ventas totales de dichos vehículos en el país, según cálculos de Argus basados en datos de Inegi. Sin embargo, el panorama en evolución de México sugiere que la demanda de gasolina de premium seguirá aumentando en lo que resta de este año, aunque seguirá siendo aun susceptible a diversos factores, como son las dinámicas del mercado y las deducciones del IEPS. Por Antonio Gozain Ventas de gasolina premium de Pemex ’000 b/d Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
German diesel demand on the rise as supply drops
German diesel demand on the rise as supply drops
Hamburg, 11 March (Argus) — Activity on German waterways increased at the beginning of March as diesel demand rises, while outages at two key refineries are weakening supply. Traded diesel volumes reported to Arg us in February were around 60pc higher than in January. Traders expect demand to rise even further in March, as agriculture and construction will need more supply when temperatures become more favourable. Import demand is also likely to increase further in the coming weeks. This is reflected in an uptick of demand for shipping space at the beginning of March, which German shipowners said was driven by exports from Germany to the trading hub at Amsterdam-Rotterdam-Antwerp (ARA) and by the domestic redistribution of products. Increased shipping activity is in part driven by two recent plant outages. Production at the PCK consortium's 226,000 b/d Schwedt refinery was limited after a crude distillation unit shut down on 2 March, and an unplanned outage of a desulphurisation unit at Shells' 147,000 b/d Wesseling refinery is limiting diesel supply. This is forcing some market participants to reroute product flows. But overall demand for imported diesel remains low. Importers say they do not expect a significant increase until the end of March or beginning of April. Planned maintenance at the 120,000 b/d Vohburg section of Bayernoil's 207,000 b/d Neustadt-Vohburg refinery and at Miro's 310,000 b/d Karlsruhe plant could then provide additional support for import demand. In the longer term, BP plans to downgrade crude processing capacity by a third at its 257,000 b/d Gelsenkirchen refinery in order to reduce the sites' carbon footprint. Coupled with the planned end of crude processing at Wesseling by early 2025 , this could increase the need for imports from ARA along the Rhine river. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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