Gasoline Market

The future development of fuel ethers is closely linked to the development of the European gasoline market.

In Europe, ethers make up about 4% of the gasoline supply. The largest gasoline consuming countries are Germany, United Kingdom, Italy, France and Spain, which account for 66% of the EU27 gasoline consumption. If the Netherlands, Greece, Poland and Sweden are added, then this figure rises to 82%. This means that the future development of the European gasoline market, and with it the blending of fuel ethers, relies primarily on the developments in these 9 countries.

The chart below shows the evolution of the Gasoline and diesel consumption in EU Member States.

European gasoline demand has declined since the year 2000 as a result of the continuing dieselization of the passenger car fleet. Because of this strong demand for diesel, the European refining industry is not balanced anymore in terms of gasoline and diesel production and consumption.

About 25% of EU gasoline production needs to be exported while a significant import of diesel is required to make up for the shortfall. Up to 2009, the gasoline demand in North America provided an outlet for the excess EU gasoline. However, the introduction of the US Energy Bill in 2005 with its requirement to blend minimum quantities of ethanol into gasoline has caused demand in North America to decline. Therefore, the excess European gasoline will need to find other outlets. The chart below shows the evolution of the EU Gasoline and diesel consumption since 1990.