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.
German oil supply holds as refinery work continues
German oil supply holds as refinery work continues
Hamburg, 11 November (Argus) — Oil product supply in Germany remains high even though a delayed end to the autumn refinery maintenance season has cut regional production. Germany's refining sector had seemed poised to finish its maintenance season at the end of October as scheduled, but the Miro and Bayernoil consortiums took catalytic hydro-desulphurisation units offline at their respective 310,000 b/d Karlsruhe refinery and the Neustadt site of the 215,000 b/d Vohburg-Neustadt refinery, both in southern Germany, at the start of November for unplanned maintenance works. Production of distillates is restricted at both refineries, leading to a drop in local supply. It is unknown when supply in Karlsruhe will return to normal levels. Local traders said supply at Neustadt will be restricted until 19 November. TotalEnergies' 240,000 b/d Leuna refinery in southeastern Germany faced some technical difficulties after maintenance works at the end of October. This delayed a return to normal production levels, and suppliers restricted sales of heating oil and road fuels in the past week as inventories were running low. The restrictions were lifted on 8 November. The rest of Germany's 11 refineries are producing normally, and diesel imports into northern ports remain high. Demand for heating oil and diesel is relatively low. Traded diesel volumes reported to Argus were almost half in the week to 7 November compared with the last week of October, and heating oil volumes fell by about 50pc at the same time. Supply remains high enough to meet demand despite the locally reduced production. By Natalie Müller Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iran sounds alarm on gasoline shortage
Iran sounds alarm on gasoline shortage
Dubai, 6 November (Argus) — The new Iranian government has sounded the alarm on an emerging gasoline shortage that looks set to get worse unless new policies are introduced to clamp down on runaway demand growth. Presenting a draft budget for the Iranian year starting on 20 March 2025, Iran's President Masoud Pezeshkian criticised the existing gasoline rationing system, calling it one of the major hurdles for the proposed bill. Iran has, since 2007, allowed citizens to buy base levels of gasoline at subsidised prices and any additional at a higher price. But the system failed to cap demand and imports sufficiently. In the proposed budget the government has signalled plans to ease shortages, but increasing prices is not on the agenda. A cut to subsidies in 2019 sparked nation-wide protests . "Today the cost of [producing] gasoline — which includes refining costs, transportation costs, and gas station maintenance costs — is about 8000 tomans (80,000 rials)," Pezeshkian said. But consumers only pay 7.5pc of the actual price of gasoline, according to Iran's oil ministry. Iran's gasoline consumption has reached a record high of around 750,000 b/d in the first seven months of the Iranian year that began on 20 March, according to the ministry. Domestic refinery capacity of 670,000 b/d has been unable to satisfy this. To bridge the gap Iran has turned to imports, which has not been easy for the heavily sanctioned country that buys the fuel at market prices. "Around 90 trillion tomans [$1.3bn at the free market rate] was spent to import gasoline this year, which could be increased to 130 trillion tomans [$1.9bn] next year if the [demand growth] trend continues," Pezeshkian warned. Supply-side response If Tehran is unwilling to raise pump prices it will have to add more supply. Work in underway to bringing online an additional fourth train at the Persian Gulf Star (PGS) condensate splitter, and on a 60,000 b/d splitter that made up just one part of the now shelved Siraf project. Consultancy FGE expects these projects to be commissioned by the end of 2025 or early 2026 and "potentially close the gap." The newly-appointed head of state-owned refining company NIORDC, Mohammad Sadegh Azimifar, said using CNG-powered vehicles could reduce the need for more gasoline production. "There are good legal capacities in the country for the development of CNG, including the approval of the energy optimization fund," he said. But CNG has lower mileage and energy content, and CNG filling stations are beset with long queues. "If you have a CNG car, you can only drive it for a day and one will have to wait in long queues to get it refilled, only for it to last for another day", said FGE's Middle East managing director Iman Nasseri. Iran has sufficient reserves of natural gas and LPG, but both of these failed to emerge as a good alternative fuel, he said. The Pezeshkian administration has repeated calls to increase use of public transport and modernise the country's vehicle fleet. But metros and buses are being utilised at maximum capacity and private vehicles are a favourable option in a country with the second-most discounted fuel prices in the world, Nasseri said. Iran is yet to tackle rampant fuel smuggling, with market sources indicating gasoline continues to be illegally shipped to neighbouring countries like Pakistan, Afghanistan and Kazakhstan. Earlier this week, authorities seized around 220,000l of smuggled fuel in several warehouses in Mashhad. While the administration strongly rebukes subsidies, with new vice president Mohammad Reza Aref calling them "unreasonable", they continue to look at solutions that does not include any increase in retail prices, in fear of a repeat of the 2019 protests. But with a lack of infrastructure to capitalize on CNG and limitations in public transportation system, the government may have no choice but to reconsider. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico loads up on US Gulf coast fuel
Mexico loads up on US Gulf coast fuel
Mexico City, 28 October (Argus) — Mexico is ramping up gasoline and diesel imports from the US Gulf coast as the year-end holiday season approaches, signaling a likely decrease in domestic refinery runs. Mexican state-owned Pemex's trading arm PMI last week put at least six MR tankers on subjects for US Gulf coast-east coast Mexico voyages amid 20-month low freight rates . One of the tankers, the Seaways Kolberg , departed on 25 October to the Tuxpan port in Veracruz, carrying about 285,000 bl of ultra-low sulphur diesel (ULSD), preliminary Vortexa data show. Two more tankers, the Coetivy and Gerakas, are expected to depart early this week to east coast Mexico, carrying a total of about 487,000 bl of gasoline. The push follows a recent drop in imports during the peak of the hurricane season, when shipments were curtailed by storm-related disruptions. The rise also reflects potential challenges within Mexico's refining system. At least three of Pemex's seven domestic refineries have undergone planned maintenance this month, including the 330,000 b/d Salina Cruz refinery, according to market sources. Additionally, the new 340,000 b/d Olmeca refinery stopped processing crude for most of October, as its crude distillation unit (CDU) again experienced issues. Minatitlan and Cadereyta refineries will undergo CDU maintenance, taking down as much as 270,000 b/d of crude processing in the first week of November, according to market sources. President Claudia Sheinbaum's administration inherited the unfulfilled goal of gasoline and diesel self-sufficiency. While Mexico has increased fuel output at its domestic refineries, the country still relies on imports for over 60pc of its gasoline and diesel demand, mainly from the US Gulf coast. Mexico's fuel imports will likely increase in the coming weeks, as November and December traditionally bring a spike in fuel demand in the country, with holiday travel and seasonal festivities driving up consumption. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia's Pertamina seeks spot 92R gasoline on demand
Indonesia's Pertamina seeks spot 92R gasoline on demand
Singapore, 25 October (Argus) — Indonesia's state-controlled refiner Pertamina has emerged to buy 92R gasoline for very prompt loading because of an increase in domestic demand for the 92R gasoline grade. The reason for the increase in 92R gasoline domestic demand cannot be confirmed but a narrower 90R and 92R gasoline price spread could have prompted consumers to choose to pump the 92R gasoline grade instead, said an Indonesia-based market participant. The 92R gasoline price fell from 12,950 rupiah/litre (82¢/litre) to 12,100 rupiah/litre in Jakarta from 1 October, while the 90R grade remained stable at 10,000 rupiah/litre, according to Pertamina. Pertamina's Pertalite has a minimum Ron rating of 90, while the Pertamax has a minimum Ron rating of 92. The 90R gasoline pumps are usually plagued with longer queues, so the narrower price spread could have encouraged consumers to pump the 92R grade instead of waiting in line, added the market participant. Pertamina, Asia-Pacific's largest gasoline buyer, issued the spot tender on 24 October to buy 400,000 bl of 92R gasoline cargoes to load over 29-31 October, according to a tender document seen by Argus . The pricing basis will be on the 25-31 October average of the Argus Singapore 92R gasoline assessments or the Platts Singapore 92R gasoline assessments, whichever is lower. The gasoline cargo will have a maximum benzene content of 5pc and a maximum sulphur content of 400ppm. The tender closes on 24 October and remains valid until 25 October. The refiner this week also concluded a rare spot tender to buy gasoline for November loading. It bought 200,000 bl and 100,000 bl of 92R gasoline for delivery over 11-13 November and 13-15 November, respectively. Both cargoes should load from Singapore or Malaysia. The price was around a $1.50/bl premium to the average of either the Argus Singapore spot 92R gasoline assessments or the Platts Singapore spot assessments, whichever is lower. The cargo will have a maximum sulphur content of 400ppm. The tender closed on 22 October. Indonesia's gasoline import volumes are expected to fall in 2025 by at least 1mn bl/month after its Balikpapan refinery expansion is completed and a new gasoline production unit starts up, said market participants. Pertamina plans to build a 90,000 b/d residual fluid catalytic cracker (RFCC) in the Balikpapan refinery, as well as upgrade the refinery and raise its capacity from 260,000 b/d to 360,000 b/d. The Balikpapan refinery will also be able to raise its Nelson Complexity Index, which measures a refinery's secondary conversion capacity by comparing it with primary distillation capacity, from 3.7 to 8. 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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