Wholesale Marketing Of Refined Petroleum Products

INTRODUCTION:

The global refining. Capacity. Estimated to be. Approximately 87 million barrels per day (mbd). With the Asia-Pacific region estimating 29% of the total refined petroleum products.

The refining market. Is divided into. Four regions South and Central America; Europe, Africa and Middle East; Asia-Pacific plus North America; and Latin America. Recent industry trends show that there is increasing demand for higher quality products like. Premium modern fuels and renewable vehicles, which have a lower yield in terms of specific. Energy content as a result of their lower energy density.  In addition, environmental regulations are gradually becoming stricter in many countries around the world – indicating that refineries will need to adopt new technologies such as hydrotreating in order to produce cleaner fuel outputs. This article will focus on the market of refined petroleum products through wholesale marketing channels.

HOW BIG IS THE MARKET OF REFINED PETROLEUM PRODUCTS?

In terms of capacity, South and Central America is estimated. Account for over 8.5% of the global refining capacity, while Asia-Pacific plus North America accounts for over 48%. Given the regional demand for refined petroleum many companies have undertaken investment projects in these regions.

WHOLESALE MARKETING OF REFINED PETROLEUM PRODUCTS:

Companies in this market typically provide a wide range of services to customers such as fuel distribution and sales to end users, as well as sale and distribution of petrochemicals (e.g., olefins, aromatics) to downstream industries. In addition, companies may provide related services such as engineering and technical support, equipment leasing and technical consultancy. Companies in this market can be broadly classified into three main categories, namely trading companies, refineries and end users. The trading companies primarily sell refined petroleum products to end users.

The refineries generally manufacture refined petroleum using gas processing, refinery feedstock and other raw materials (e.g., crude oil)>

which are then traded on. The domestic and international markets. The end-user companies purchase refined petroleum products from the trading companies to supply their own requirements (e.g., diesel fuel, aviation fuel).

WHAT ARE REFINED PETROLEUM PRODUCTS?

Some of the most commonly refined petroleum products include aviation fuel, diesel fuel, kerosene and lubricating oil. The end user market for refined petroleum is highly competitive, therefore companies in this market must be able to compete in terms of price and quality. To ensure that end users are receiving the best value for money from their supplies, it is a common practice for companies to negotiate with downstream industries (e.g., lubricants manufacturers) for purchasing bulk quantities of product at discounted prices. Refineries also offer financial assistance to end-user companies that are experiencing difficulties in their business operations (e.g., cash flow problems).

ADVANTAGES OF PETROLEUM PRODUCTS:

Refined petroleum products may have a number of benefits to end users. For example, the availability of different grades and combinations of refined petroleum allow users to choose the best product based on their requirements. Also, since refined petroleum are widely.

Used in various industries such as transportation. Construction and power generation. Companies in this market may have access to a wide range of potential customers who can purchase their

DISADVANTAGES OF PETROLEUM PRODUCTS:

On the other hand, some key disadvantages of refined petroleum. Include significant inventories that may be found in stock tanks and storage facilities. Which can lead to reduced margins for wholesalers and end-users. Also, due to the wide range of products and their high value per unit weight, it is expensive for companies to transport bulk volumes as well as store them.

CONCLUSION:

This article provides a comprehensive overview of the global market for marketing refined petroleum from wholesalers, refineries and end-users. The study provides an understanding of the value chain for refined petroleum products, as well as the market size and the related trends.