Wilting demand for diesel in Europe could persuade refiners to redirect vacuum gas oil to base oil production, writes energy market intelligence company Platts.
Since the Volkswagen diesel emissions scandal in 2014, consumer appetite for diesel cars has waned. In that year, diesel engine cars captured about 50% of annual new car sales. Now that share is 14% and dropping, losing ground to hybrids and battery electric vehicles, which have enjoyed greater market share since December 2021.
The average European price at the pump for diesel has fallen to €1.65 per liter from a high of €4.42 in October 2022, a 63% drop as a result.
According to data gathered by Lube Report, Group II 600N in Europe was going for between €1,185 per metric ton and €1,225/t.
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