Argentina's fuel market data reveals a growing consumer preference this year for premium over regular grades, a trend that is also shaping production.
Regular grades are still the best selling products in Argentina's fuel stations, but their market share is decreasing, according to Energy Secretariat data.
In August, regular diesel sales dropped by 9pc compared with a year earlier, while premium diesel demand rose by 10pc.
Gasoline followed the same pattern, with regular volumes falling by 1pc and premium gasoline sales surging by 16pc.
This shift toward higher-grade fuels is also evident in the agricultural sector, where regular diesel sales in August rose by 20pc year-on-year and premium diesel climbed 27pc. Despite this, regular diesel remains the dominant fuel for machinery, with August sales totaling 40,884 b/d, compared to just 4,767 b/d for premium diesel.
Looking at the broader picture from January to August, regular diesel sales fell by 9pc from the same period in 2024, while premium diesel demand increased 11pc. Regular gasoline sales were up 1pc, while the premium grade jumped 16pc.
Premium production climbs
Refiners have responded to this shift by adjusting output.
In August, diesel production rose 11pc year-on-year, driven by a 28pc surge in premium diesel output. Regular gasoline production, meanwhile, fell 4pc, while premium grade output was stable.
Although fuel sales have been showing signs of recovery from 2024 levels, total volumes in January-August this year were 8pc below levels in the same period of 2023.
The downturn is partly due to policy changes under President Javier Milei, who took office on 10 December 2023. His administration began aligning domestic fuel prices with international benchmarks by gradually unfreezing taxes that had been flat since 2021.
The resulting price hikes had a noticeable impact on consumption, especially in border regions where residents previously had crossed into Argentina to fill up at cheaper stations. The price alignment also curbed fuel smuggling into neighboring countries like Paraguay, Brazil, and Uruguay.
Imports tumble
On the supply side, diesel imports fell sharply in August to 7,391 b/d, down 66pc on the year and 63pc on the month. Only Shell and Trafigura imported diesel that month.
Gasoline imports last month were zero, mirroring August 2024, but contrasting with July's 9,524 b/d of imports.
These fluctuations are closely tied to refinery maintenance schedules. In the first half of the year, five of Argentina's main refineries underwent planned maintenance.
