Market Trends of Southeast Asia Refined Petroleum Products Industry
This section covers the major market trends shaping the Southeast Asia Refined Petroleum Products Market according to our research experts:
Automotive Fuel to Dominate the Market
- Automotive fuel is expected to grow at the fastest rate during the forecast period due to the government's new regulations to adopt upgraded and cleaner versions of petrol and diesel in the transportation sector.
- Oil refining in Southeast Asia Countries has witnessed significant growth in recent years. Indonesia's oil refining capacity has been recorded as 1,094,000 barrels per day. Similarly, Malaysia recorded 955,000 barrels per day, Thailand recorded 1,245,000 barrels per day, and Vietnam recorded 367,000 barrels per day of oil refining capacity.
- Furthermore, automobile sales in the region are increasing at a high growth rate. Southeast Asian countries are developing countries majorly dependent upon automotive fuel. With the increasing population, the demand for automobile sales increased. For instance, new passenger car sales in Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Singapore totaled 2.79 million vehicles in 2021, 14% higher in 2020.
- Moreover, the growth of the manufacturing industry in the region is likely to drive the demand for refined petroleum products from the commercial sector during the forecast period.
- The demand for petrol is likely to grow in the near future due to rapid industrialization and urbanization in the country. This development has resulted in higher demand for passenger vehicles and two-wheelers in the country.
- Hence, owing to the above points, the segment of automotive fuel is likely to see significant growth in the market during the forecast period.
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Significant Growth Expected in Indonesia
- Indonesia's aviation industry recorded robust growth, marked by increased passenger numbers, expanding fleets, and increased flights. The country's unique geographical conditions, rising middle-class population, and strengthening domestic and international tourism industry are driving its aviation industry.
- The need for oil transportation infrastructure is increasing due to numerous projects undertaken for petrochemical and refining facilities to be built or upgraded.
- Approximately 1.47 million barrels of oil are consumed daily in Indonesia. The country's production volume of oil reached 692 thousand barrels per day in 2021.
- The Indonesian government decided to increase refining capacity by 2025 to achieve 2.2 million barrels per day. Major refinery and petrochemical plant development and upgrade projects are imminent and, on the horizon, due to these initiatives.
- Hence, owing to the above points, the refined petroleum products market in Indonesia is expected to see significant growth during the forecast period.
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