Southeast Asia Refined Petroleum Products Market - Growth, Trends, and Forecasts (2023-2028)

The Southeast Asia refined petroleum products market is expected to register a CAGR of over 4% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

Key Highlights

• Over the medium term, the growing high power demand is expected to stimulate the growth of the refined petroleum products market in the region. Furthermore, increasing investments in refined petroleum products are expected to drive growth.
• On the other hand, the growing emphasis on renewable energy and the adoption of electric vehicles are expected to hamper the growth of the market during the forecast period.
• Nevertheless, favorable policies for investment by private players in the region would likely create lucrative growth opportunities for the refined petroleum products market.
• Indonesia is expected to witness significant growth and is also likely to witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments, coupled with supportive government policies in the country.

Southeast Asia Refined Petroleum Products Market Trends

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.

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.

Southeast Asia Refined Petroleum Products Market Competitor Analysis

The Southeast Asia refined petroleum products market is moderately fragmented in nature. Some of the major players in the market (in no particular order) include BP PLC, Shell PLC, TotalEnergies SE, PT Pertamina (Persero), and Exxon Mobil Corporation.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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