Road fuels
Overview
Fuels for road transportation continue to drive the refining industry. But gasoline and diesel use is coming under increasing pressure from the introduction of low-carbon targets 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 conventional fuels — gasoline, middle 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.
Iraq eyes gasoil imports to alleviate power shortage
Iraq eyes gasoil imports to alleviate power shortage
Dubai, 6 March (Argus) — Iraq's electricity ministry has asked the government to raise gasoil imports as a precautionary measure to ensure the country has enough fuel for power generation head of the peak demand summer months. The request is pending the oil ministry's approval. If authorised, Iraq's gasoil imports could shortly ramp up to 100,000 b/d, almost three times the 35,000 b/d that was imported last month, the oil ministry told Argus . Iraq typically relies on imported natural gas from Iran to generate electricity for its national grid. But Tehran cut gas supplies to its western neighbour in the last quarter of 2024 because of its own power shortages. Insufficient gas from Iran forced Iraqi power plants to switch to burning gasoil, while private consumers generated power from diesel-run units, further exacerbating fuel shortages. Iraq's power generation shortage could soon become more acute as gas imports from Iran are at risk of stopping completely. The waivers that allow Iraq to import Iranian electricity and gas without falling foul of US sanctions are unlikely to be renewed given President Donald Trump's "maximum pressure" policy against Tehran. The latest 120-day waiver is due to expire on 7 March. Meanwhile, Iraq's domestic gasoil production is being curtailed by constraints on crude supply to refineries. Baghdad's commitment to rein in crude production to compensate for past breaches of its Opec+ target has cut available supply for domestic refineries, lowering oil product output, the oil ministry said. Iraq is seeking to address its electricity issues by looking for investment for new power generation infrastructure. The country plans to build new steam and gas plants that could produce up to 35,000MW of electricity, which would bridge the gap between current electricity supply and demand. Baghdad has approached international engineering companies including GE and Siemens to partner in these projects, according to electricity minister Ahmed Moussa, but the government has not disclosed a clear timeline for implementation. By Ieva Paldaviciute and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Japan petchem producers urged to turn to ethane
Japan petchem producers urged to turn to ethane
Declining exports and demand signal that Japan's petchem sector is lagging behind its competitors, writes Nanami Oki Tokyo, 5 March (Argus) — Japan's petrochemical producers should convert their ethylene steam crackers to low-cost ethane rather than naphtha and LPG and should do so now before the challenges become impossible, refinery integration research association Ring says. Japan has a total cracking capacity of around 6.8mn t/yr, most of which is naphtha-fed with about 6.2mn t/yr of this coming with the flexibility to crack some degree of LPG, Argus data show (see table). Operators should turn to cheaper ethane imported from the US, Ring says, adding that it is concerned Japan's petrochemical sector is falling behind international competitors such as China , South Korea and Vietnam in a burgeoning feedstock transition to ethane. The country's petrochemical sector is already struggling from declining exports and domestic demand, pressured by regional oversupply driven by China. This has prompted Japanese firms to cut production of ethylene and other petrochemicals while focusing more on high-performance goods. But overseas competitors will catch up with Japanese technologies to generate these value-added products, so it is crucial to secure cheaper feedstock in the long term, Ring says. Switching to ethane-fed crackers could help domestic firms retain their competitiveness, with potential cost reductions of up to $400/t of ethylene output, Ring estimates. But the industry faces headwinds if it is to transition, the association says. One issue is that the companies do not have requisite funds for large-scale investments in switching to ethane that the associated infrastructure requires as a result of stagnant growth. Japanese producers with crackers — Mitsui Chemicals, Sumitomo Chemical, Mitsubishi Chemical, Tosoh and Resonac — have all posted lower profits from their basic petrochemicals divisions on shrinking margins in the past five years. The transition also requires infrastructure including storage facilities and ethane barges and ships to enable imports from the US, adding significant costs. Japanese firms are unlikely to have adequate infrastructure, let alone funding, to invest in such capacity and some, along with the country's authorities, have begun exploring converting existing facilities to alternative fuels such as hydrogen and ammonia to capitalise on anticipated growth in renewable fuels. Ring and Japan's economy, trade and industry ministry (Meti) have also expressed concern that a switch to ethane for cracking could create shortages in supplies of other basic petrochemicals other than ethylene because ethane feedstock yields mainly ethylene. Japanese companies have attempted to develop butadiene production from alternative feedstocks such as bioethanol and recycled oils for decarbonisation. But such technologies are at the early stages of development and their profitability remains hamstrung by high costs. Ring the changes Developing new propane dehydrogenation plants could help Japan prevent propylene shortfalls, but this is unlikely to be feasible given the levels of investment and acreage required at existing petrochemical complexes. The country's petrochemical producers could convert a proportion of their individual crackers to be fed with ethane in a flexible set-up instead of replacing the unit. Japanese crackers have many different components varying in age that will be difficult to replace under an ethane-only system, Ring says. It would also be preferable to diversify feedstocks for supply security, it says. Japan's ethylene production fell by 2.4pc on the year to 4.99mn t in 2024, the JPCA says, the lowest since its records began in 1999. Average cracker operating rates stood at 79.9pc last year, down by 0.9 percentage points from 2023, falling below 80pc for the first time since 2014 — when the first JPCA data on utilisation were available. Japan's petrochemical sector use of LPG fell by 13pc on the year to 1.39mn t in 2024, data from the Japan LPG Association show. NE Asia cracker cash margins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexico denounces Trump tariffs, retaliation to come
Mexico denounces Trump tariffs, retaliation to come
Mexico City, 4 March (Argus) — Mexican president Claudia Sheinbaum called the US' 25pc tariff on all Mexican goods unjustified but is withholding details of her government's planned counter-tariffs and other measures until Sunday. "There is no reason, rationale or justification to support this decision, which will hurt our people and countries," Sheinbaum said, emphasizing that "nobody wins with this decision." Mexico's government has collaborated closely with the US on drug trafficking, security and migration issues, Sheinbaum said. She highlighted Mexico's efforts to halt the flow of the deadly opioid fentanyl into the US as well as action taken against organized crime. Mexico's industrial association (Coparmex) said the 25pc tariffs violate the US-Mexico-Canada (USMCA) free trade agreement that was negotiated under Trump's first administration and weaken integration of the economies. This would likely trigger a recession in Mexico and generate inflationary pressures, the group said. "The measure threatens disruptions in strategic sectors and could lead to the productive disintegration of North America," Coparmex said. The US tariffs took effect at 12:01am ET (05:01 GMT) on 4 March. The duties have been set at 25pc on all imports from Mexico, 10pc on Canadian energy imports and 25pc on non-energy imports from Canada under an executive order signed in February. Within minutes of the higher duties taking effect, Beijing announced it would impose new 10pc tariffs on US agricultural products. Canada immediately imposed 25pc tariffs on $30bn of US imports, followed by another $125bn of imports in 21 days' time. The delay in Mexican counter-tariffs may be a sign that Sheinbaum hopes there is still room to end the measures early. Tariffs would likely curtail energy trade between the US and Mexico. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Mexico also imports much of its road fuels and LPG from the US. But hitting these goods with retaliatory tariffs would be costly for Mexico and may be unlikely, according to market sources. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
India eyes higher ethanol blending target
India eyes higher ethanol blending target
Mumbai, 27 February (Argus) — India is considering increasing its target for ethanol blending in gasoline from the current level of 20pc, oil and gas minister Hardeep Singh Puri said. "We have already set up a group under [government think-tank] Niti Aayog and the concerned people who are looking at it," Puri said, without indicating how long the process could take. Ethanol blending in gasoline reached a record high of 17.4pc in the three months from November 2024 to January 2025, and 19.6pc in January, the latest oil ministry data show. India initially set a target to achieve a 20pc ethanol blend in gasoline in the November 2025 to October 2026 period, under its ethanol blending programme designed to cut dependence on crude imports. India is likely to achieve the 20pc target by March, Puri said. The government estimates that 11bn litres/yr of ethanol would be needed to achieve the target. Domestic ethanol production has currently reached around 15bn l/yr, comprising 6.05bn l/yr from grain-based distilleries and 9.23bn l/yr from molasses-based distilleries. Ethanol interest subvention schemes have helped increase ethanol distillation capacity to 17bn l/yr. India's crude oil consumption is likely to rise to 6.5mn-7mn b/d in the short to medium term from around 5.5mn b/d now, buoyed by economic growth, Puri said. The IEA expects India to again be among the leading sources of oil demand growth this year, forecasting its demand to rise to 5.83mn b/d in 2025 from 5.6mn b/d in 2024. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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Argus North American Biofuels, LCFS & Carbon Markets Summit
Argus North American Biofuels, LCFS & Carbon Markets Summit
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Argus Biofuels Europe Conference & Exhibition
