Fuel Oil Global Market Report 2026

Fuel oil is a petroleum distillation byproduct, existing as a thick, dark liquid ranging from yellowish to light brown. It undergoes refining processes to become a versatile energy source, finding applications in heating, power generation, industrial operations, and transportation.

Fuel oil comes primarily in two forms such as heavy fuel oil (HFO) and light fuel oil. Heavy fuel oil stands out for its higher density and viscosity compared to other fuel oils. It is utilized across various sectors, including transportation via road and domestic waterways, marine bunkers, petrochemicals, residential, commercial, agricultural use, and electricity generation. It can be sourced through oil pipelines, gas stations, and distribution outlets.

Tariffs have impacted the fuel oil market by increasing costs associated with cross border trade of refined fuel products and crude feedstocks. These impacts have been more pronounced for marine bunker fuel and power generation fuel oil segments, particularly in regions such as Asia Pacific and Europe that rely on imports. Higher tariffs have affected pricing structures and refinery margins. At the same time, tariffs have supported domestic refining activities and encouraged localized fuel oil distribution networks, improving regional supply security.

The fuel oil market research report is one of a series of new reports from The Business Research Company that provides fuel oil market statistics, including fuel oil industry global market size, regional shares, competitors with a fuel oil market share, detailed fuel oil market segments, market trends and opportunities, and any further data you may need to thrive in the fuel oil industry. This fuel oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The fuel oil market size has grown steadily in recent years. It will grow from $196.03 billion in 2025 to $202.98 billion in 2026 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to growth of thermal power plants, expansion of maritime trade, historical dependence on fuel oil for heating, widespread availability of crude oil derivatives, industrialization in developing economies.

The fuel oil market size is expected to see steady growth in the next few years. It will grow to $238.18 billion in 2030 at a compound annual growth rate (CAGR) of 4.1%. The growth in the forecast period can be attributed to demand from marine bunkering sector, growth in backup power generation, refinery residue optimization, energy demand in remote locations, continued use in heavy industries. Major trends in the forecast period include rising use of heavy fuel oil in marine bunkering, increasing demand for fuel oil in power generation, growing blending of fuel oil for industrial applications, shift toward low sulfur fuel oil grades, stable demand from remote and off grid energy systems.

The rising demand for oil is expected to drive the growth of the fuel oil market in the coming years. In the petroleum industry, oil refers to crude oil, a naturally occurring mixture of hydrocarbons and other organic compounds found in subsurface rock formations. Sectors such as transportation, industrialization, and power generation have high energy needs, with growing global populations, economic development, and seasonal factors also influencing fuel oil demand. For example, in October 2024, the Energy Information Administration, a U.S.-based federal agency responsible for collecting and disseminating energy information, reported that global production of petroleum and other liquid fuels will increase by 2.0 million barrels per day (b/d) in 2025, compared to a growth of just 0.5 million b/d in 2024. Additionally, in June 2023, the International Energy Agency, a France-based intergovernmental organization, projected that global oil demand would reach 105.7 million barrels per day (mb/d) by 2028, marking a cumulative increase of 6% from 2022. As a result, the growing demand for oil is driving the expansion of the fuel oil market.

The leading companies in the fuel oil market are embracing cutting-edge technologies like eFining to fortify their market standing. eFining technology involves a methanol-to-jet fuel (MTJ) process, enabling the reliable and large-scale conversion of eMethanol to eSAF (electronic sustainable aviation fuel). In May 2023, Honeywell International Inc., a US-based conglomerate corporation, unveiled its UOP eFining technology-a revolutionary method for generating sustainable aviation fuel (SAF) from captured carbon dioxide (CO2) and renewable hydrogen. This technology surpasses others in terms of efficiency and scalability, positioning it as a prime choice for adoption in the aviation sector. Its efficiency, cost-effectiveness, and scalability make it a pivotal tool in meeting the escalating demand for renewable fuels, particularly SAF. This advancement aligns with global endeavors to expedite the integration of sustainable aviation fuels and attain ambitious decarbonization objectives in the aviation industry.

In December 2024, Gulf Oil Lubricants India Limited, an India-based manufacturing company, entered into a partnership with Nayara Energy to reinforce their collaboration within the automotive and industrial lubricants ecosystem. Through this partnership, Gulf Oil Lubricants India seeks to broaden its market presence and improve product availability by utilizing Nayara Energy's extensive fuel retail network, while jointly promoting the growth of premium lubricant solutions across India. Nayara Energy Limited is an India-based manufacturing and energy company engaged in refining, fuel retailing, and integrated downstream petroleum operations, with a strong nationwide footprint supported by its expanding network of fuel stations.

Major companies operating in the fuel oil market are Royal Dutch Shell plc, TotalEnergies SE, BP p.l.c., Chevron Corporation, Marathon Petroleum Corporation, Phillips 66 Company, Saudi Aramco, ENI S.p.A., Valero Energy Corporation, PJSC Rosneft Oil Company, Reliance Industries Limited, Indian Oil Corporation, Petronas (Petroliam Nasional Berhad), Repsol S.A., Pemex (Petroleos Mexicanos), OMV Group, Petrleos de Venezuela S.A (PDVSA), SK Innovation Co. Ltd., Abu Dhabi National Oil Company (ADNOC), Bharat Petroleum Corporation Limited (BPCL), Surgutneftegas PJSC, Hess Corporation, QatarEnergy, Cabot Oil & Gas Corporation, Sinopec Corp., Exxon Mobil Corporation, PJSC Gazprom, OAO Lukoil, National Iranian Oil Company (NIOC), Kuwait Petroleum Corporation (KPC)

Asia-Pacific was the largest region in the fuel oil market in 2025. Middle-East is expected to be the fastest-growing region in the forecast period. The regions covered in the fuel oil market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the fuel oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The fuel oil market consists of sales of jet fuel, furnace oil, bunker fuel, industrial fuel oil, marine fuel oil, storage tanks, bitumen, asphalt, and kerosene. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Fuel Oil Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses fuel oil market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for fuel oil ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The fuel oil market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Heavy Fuel Oil; Light Fuel Oil
• 2) By Distribution Channel: Oil Pipelines; Gas Stations; Distribution Stores
• 3) By Application: Road And Domestic Waterway; Marine Bunkers; Petrochemicals; Residential Or Commercial Or Agricultural; Electricity Generation; Other Applications
• Subsegments:
• 1) By Heavy Fuel Oil: Marine Fuel Oil; Industrial Fuel Oil; Power Generation Fuel Oil
• 2) By Light Fuel Oil: Heating Oil; Diesel Fuel; Kerosene
• Companies Mentioned: Royal Dutch Shell plc; TotalEnergies SE; BP p.l.c.; Chevron Corporation; Marathon Petroleum Corporation; Phillips 66 Company; Saudi Aramco; ENI S.p.A.; Valero Energy Corporation; PJSC Rosneft Oil Company; Reliance Industries Limited; Indian Oil Corporation; Petronas (Petroliam Nasional Berhad); Repsol S.A.; Pemex (Petroleos Mexicanos); OMV Group; Petrleos de Venezuela S.A (PDVSA); SK Innovation Co. Ltd.; Abu Dhabi National Oil Company (ADNOC); Bharat Petroleum Corporation Limited (BPCL); Surgutneftegas PJSC; Hess Corporation; QatarEnergy; Cabot Oil & Gas Corporation; Sinopec Corp.; Exxon Mobil Corporation; PJSC Gazprom; OAO Lukoil; National Iranian Oil Company (NIOC); Kuwait Petroleum Corporation (KPC)
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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