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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.
Mexico’s gasoline, diesel prices hit record highs
Mexico’s gasoline, diesel prices hit record highs
Mexico City, 26 June (Argus) — Mexico's average retail prices for gasoline and diesel have increased to all-time highs, driven by relatively lower tax deductions and higher international prices. Retail prices for regular gasoline in Mexico reached Ps23.73/l ($4.95/USG) on 25 June, up by 8pc from a year earlier and the highest since Argus in July 2018 started tracking prices reported by retailers to the energy regulatory commission (CRE). Regular gasoline's average retail price surpassed the Ps23/l barrier on 16 February for the first time. Similarly, national average retail prices for diesel reached an all-time high Ps25.38/l on 25 June, up by 7pc from a year earlier, the same data show. The hike was in part supported by a combination of lower tax deductions, higher international prices and a weaker Mexican peso. The excise tax deduction for regular gasoline was set at Ps0.3621/l for the 22-28 June week, down from a Ps1.2845/l tax deduction in the same week of 2023. Meanwhile, diesel subsidies were 15pc lower for the 22-28 June week year over year. At the same time, delivered regular gasoline prices to Mexico's east coast from the US Gulf coast — which provides most of Mexico's imports — rose by 5pc to $2.34/USG on 25 June, up from $2.22/USG a year earlier, according to Argus assessments. Delivered diesel prices to Mexico's east coast from the US Gulf coast rose by 10pc to $2.50/USG on 25 June year-over-year. Furthermore, the Mexican peso's post-election depreciation has made fuel imports more expensive. The exchange rate stood at Ps18.13/$1 on 25 June, up by 5pc from Ps17.14/$1 a year earlier, according to Mexico's central bank Banxico. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Phillips 66 completes Rodeo renewables conversion
Phillips 66 completes Rodeo renewables conversion
Houston, 26 June (Argus) — Phillips 66's Rodeo, California, refinery has completed a multi-year, billion-dollar conversion to process only renewable feedstocks, increasing throughput rates to 50,000 b/d. The 128-year-old Rodeo plant stopped processing crude in February , taking up to 115,000 b/d of oil refining capacity offline as it transitioned to producing renewable diesel (RD) and, eventually, sustainable aviation fuel (SAF). The plant initially bought and refined pre-treated feedstocks while building its own 40,000 b/d pre-treatment unit (PTU), whose two 20,000 b/d trains will prepare raw feeds such as used cooking oil, fats, greases and vegetable oil for Rodeo's three renewable diesel units (RDUs) before the end of this month. "The pre-treatment area will run at max rates as soon as it's commissioned," and refine harder-to-process feedstocks later in the year, Rodeo refinery manager Jolie Rhinehart told Argus on site at the plant earlier this month. "Our units will be able to process the lowest carbon intensity (CI) feedstocks, something that's called brown grease." There is also a financial incentive to process lower CI feeds. "That's how you really make money in these assets," Phillips 66 chief executive Mark Lashier told investors at the JP Morgan Energy Power & Renewables conference earlier this month. While optimizing feedstocks may help boost profits at the plant, Low Carbon Fuel Standard (LCFS) credits — which provide much of the financial incentive for renewable fuel conversions — are in the doldrums. A robust supply of low-carbon fuels such as RD to west coast markets has outstripped demand in recent years, helping drive down LCFS credit prices to nine-year lows earlier this month. But the unbalanced market has not led Phillips 66 to alter its strategy. Ample demand for renewable fuels There will be "ample" demand for Rodeo's refined products in the short-term, Rhinehart told Argus . "One thing that is stronger than ever is demand for liquid transportation fuels in the state of California." She plans to run the Rodeo plant like Phillip 66's other crude refineries, altering throughputs according to the cost and availability of feedstocks and the price that it can sell finished product. "We're not going to run if we're not making money," Rhinehart said. Still, the company has signaled its intention to run high rates. "We see good economic incentives to run and run full [at Rodeo]," Lashier told conference attendees, noting that while LCFS credits are "compressed," feedstock costs are also lower than the company anticipated. Another part of the profitability equation Phillips 66 does have control over is the infrastructure to distribute RD, selling Rodeo's product alongside conventional fuels at its "76" brand gas stations across the west coast. The company owns a products pipeline that connects Rodeo to a Phillips 66 marine and truck rack terminal on the San Francisco Bay, just south of Chevron's 245,000 b/d Richmond refinery ( See map). "We're very confident in our ability to place all those [renewable product] barrels locally," Rhinehart said. "And if there's demand outside of the region, we will surely supply that if the market supports it." Rodeo has so far supplied RD to California, Washington and Oregon and the Canadian province of British Columbia. Like a conventional crude refinery, the Rodeo complex will also periodically reduce throughputs for maintenance. Rhinehart expects a catalyst change for one of its reactors every year-and-a-half and a full catalyst change for all reactors every three years. Although Rodeo is up and running, permitting difficulties could preclude any future expansion of the plant. Rhinehart has a "substantial" list of projects she would like to progress, potentially including green hydrogen, but worries whether the company could make it through the permitting process. This was a concern also voiced by Phillips 66's executive vice president of emerging energy and sustainability Zhanna Golodryga in an interview with Argus at the company's Houston headquarters earlier this month. "We probably could have brought Rodeo online sooner if we didn't have to wait for some permits," she said in reference to a back-and-forth with Contra Costa County late last year over Rodeo's environmental impact review. Golodryga is eyeing the Gulf coast for Phillips 66's next low carbon energy hub, believing that Texas is the energy transitions Silicon Valley. By Nathan Risser Phillips 66's west coast refining assets Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Toyo, SCG enhance waste plastics recycling partnership
Toyo, SCG enhance waste plastics recycling partnership
Tokyo, 24 June (Argus) — Japanese engineering firm Toyo Engineering and Thai petrochemical producer SCG Chemicals plan to enhance their partnership in the chemical recycling of waste plastics, aiming to launch an upgraded demonstration plant in Thailand by early 2025. The agreement to co-operate on the future commercialisation of the chemical recycling technology of SCG subsidiary Circular Plas (CirPlas) and the development of a licensing business is a follow-up to the companies' initial deal to study the feasibility of chemical recycling in Thailand in January 2022. CirPlas is 60pc owned by SCG and has developed chemical recycling technology turning mixed plastic wastes into naphtha and then plastic resins. Toyo and SCG plan to add a new unit to the operating pilot plant in south Thailand's Rayong province. The companies are still examining the output capacity of the enhanced pilot plant and future commercial operation. They are unsure when they will start operations of the commercial venture. The circular economy has been a major topic in Japan's petrochemical industry on the back of the country's 2050 decarbonisation goal. Petrochemical producer Mitsui Chemicals in March began using pyrolysis oil , generated from waste plastics, to manufacture petrochemical products at its Osaka naphtha-fed cracker. Sumitomo Chemical plans to begin recycling polymethyl methacrylate in 2025. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
South Korea buys less UAE naphtha in May
South Korea buys less UAE naphtha in May
Singapore, 19 June (Argus) — South Korea's naphtha imports from the UAE fell to a two-year low in May, following reduced output by Abu Dhabi's state-owned Adnoc. South Korea imported 97,500 b/d from the UAE, a 23pc drop from the previous month and down by 24pc from a year earlier, according to GTT customs data. This was the lowest level since 83,800 b/d in May 2022. This was in sharp contrast to imports in this year's first quarter that averaged 205,000 b/d. South Korea imported 192,000 b/d of naphtha from the UAE in 2023. Adnoc was expected to reduce its naphtha production and exports following a change in its domestic crude slate. Adnoc had started to divert its medium sour crude grade Upper Zakum to its Ruwais refinery complex as part of the company's $3.5bn crude flexibility project, which is designed to free up more of the UAE's lighter, sweeter Murban grade for export. The switch in Ruwais' crude appetite reduces naphtha production, as the yield of naphtha from Upper Zakum crude is less than its Murban grade, said market participants. The actual loss of supplies cannot be confirmed but it is forecast to be around 900,000-1.2mn t/yr (22,000-29,000 b/d), said two petrochemical producers that are also buyers of naphtha from Adnoc. There is also a South Korean customs investigation under way to ensure cracker operators are not importing oil from sanctioned countries such as Russia. The investigation has reduced "but not stopped" imports of naphtha from commercial storage tanks in places like the UAE and Singapore, said a South Korean trader. Adnoc is the main supplier but there are other smaller UAE suppliers in Fujairah and Hamriyah. Some Korean cracker operators are avoiding commercial tank naphtha because of the customs investigations, another South Korean trader said. Qatar and Kuwait were the main beneficiaries with South Korea's shift from UAE naphtha. South Korea's imports in May from Qatar and Kuwait rose by 89pc and 45pc month-on-month respectively. Imports from Qatar were 128,500 b/d, while shipments from Kuwait totalled 105,000 b/d. South Korea had imported 50,000 b/d from Qatar and 54,000 b/d from Kuwait in this year's first quarter. By Aldric Chew Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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