A drop in fuel oil output, tight barge availability, and cheaper alternatives at rival ports dragged Argentina's bunker sales down in early 2025. But with refinery maintenance wrapped up and bunker barges back online, local suppliers are optimistic about a rebound in the second half.
Very low-sulphur fuel oil (VLSFO) sales in January-May fell by 23pc compared to the same period a year earlier to 437,917t, according to Argentina's Petroleum and Gas Institute (IAPG). The slide mirrored a 19pc drop in residual fuel oil production, which fell to 868,464t driven largely by refinery maintenance. Nearly half of the country's residual fuel oil came from Raizen's Dock Sud refinery (47pc), followed by Trafigura's Ricardo Elicabe (18pc) refinery, YPF's La Plata (17pc), and Pan American Energy's Campana plant (14pc). Argentina's total petroleum product output was also down by 7pc to 12.3mn t.
Operational issues added pressure with two bunker barges offline in the first quarter, slowing loadings in Buenos Aires. At the same time, Buenos Aires's VLSFO premium to the competing ports of Santos, Brazil, and Cristobal, Panama widened (see chart). "[But we are] looking at a healthy demand this July for Zona Comun and Buenos Aires", a bunker seller told Argus, pointing to signs of recovery.
Trafigura led VLSFO bunker sales volumes with 29pc, followed by Shell with 28pc, YPF and Pan American Energy with 19pc each, and Fox Petrol with 5pc. Marine gasoil MGO volumes held steady at 251,647m³ (209,770t), with YPF capturing 58pc of the market. Argetina's MGO sales were nearly unchanged in the first five months of the year from a year earlier, according to IAPG.
Meanwhile, Argentina's government this week made permanent the temporary cuts implemented at the end of January to export taxes on agricultural products like soybeans, corn, and sunflower oil. The tax relief could boost bulk carrier traffic. But the main export windows for these products are concentrated from January-July, thus the policy itself is unlikely to drive an uptick in second-half bunker demand, noted one bunker supplier.
