Market Trends of Europe Refined Petroleum Products Industry
This section covers the major market trends shaping the Europe Refined Petroleum Products Market according to our research experts:
Aviation Fuel Usage to Grow Significantly
- Air transportation of passengers in European countries is increasing considerably. There is a need for aviation to meet the upcoming demand. Also, the EU aviation sector is committed to decarbonizing air transport and accelerating its efforts to make Europe the world's first CO2-neutral continent by 2050.
- Aviation fuel consumes around two-thirds of the fuel used by the British military. The British defense aviation sector is likely to witness considerable growth due to increasing developments concerning adopting sustainable aviation fuel.
- According to the United States Energy Information Administration, jet fuel consumption in the United Kingdom has reported around 101 thousand barrels per day in 2021, which is comparatively lower than 107.3 thousand barrels per day recorded in 2020.
- However, in December 2021, the Spanish Ministry of Defense ordered 36 Airbus H135 helicopters, adding to the military aircraft inventory. This is expected to boost aviation fuel sales during the forecast period.
- Furthermore, in February 2022, IATA encouraged the Spanish government to reject the proposal of increasing the airport charges from Aeropuertos Españoles y Navegación Aérea (AENA). The proposal was made to recover economic losses worth USD 2.52 billion during the pandemic. Such decisions are likely to encourage more air passengers to travel, which is expected to culminate in the growth of the region's refined petroleum products market.
- Owing to the above points, the growing usage of aviation fuel is expected to contribute to the growth of the European refined petroleum products market during the forecast period.
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United Kingdom is Expected to Dominate the Market
- The United Kingdom is one of the major countries in the European Union utilizing refined petroleum products. Air transport is a critical sector in the Kingdom's economy, accounting for a small but significant percentage of the country's GDP in 2021. In 2020, the outbreak of COVID-19 compelled the government to put several air travel restrictions in place, leading to a decline in jet fuel consumption.
- According to United Kingdom Petroleum Industries Association (UKPIA), petrol is the most produced refined petroleum product in the United Kingdom. Between 2012 and 2021, petrol accounted for 27% of the total petroleum products production. This was followed by diesel (diesel engine road vehicle fuel - DERV) at 22%.
- Also, the United Kingdom has 8,378 operational petrol stations as of 2021. The country is among the leading ten European countries by the number of petrol stations, while Italy ranks first with over 20,000 service stations.
- In recent days the country has witnessed increasing demand for LPG in residential and commercial spaces. The growing demand for LPG may, in turn, culminate in the growth of the country's refined petroleum products during the forecast period.
- Moreover, in October 2022, Flogas Britain, one of the UK's leading liquefied petroleum gas (LPG) suppliers, was granted planning permission to construct a gas pipeline from Bristol Port into the UK's largest aboveground LPG storage terminal at Avonmouth. The storage facility, formerly owned by National Grid, was previously only able to store LNG. However, Flogas is converting it into an LPG and green gas storage facility, with the capacity to store 34,564 tonnes.
- Furthermore, in February 2022, six new oil and gas fields in the North Sea almost confirmed the approval from the UK government. The finance department pushed the senior authorities to fast-track the licenses for constructing the six energy areas. This, in turn, benefits oil and gas production activities across the country and further culminates in the growth of the refined petroleum products market.
- Owing to the above points, the United Kingdom is expected to dominate the European refined petroleum products market during the forecast period.
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