BAKU, Azerbaijan, Feb.16. Global gasoline output is expected to increase by 1.9 percent in 2023, as compared to 2022, when the growth was 1.5 percent, Trend reports with reference to Fitch Solutions.
The rising pace of gasoline production will put a downward pressure on prices. China and the US will account for 42 percent of the gasoline output growth of 470,000b/d on average.
“We now expect total gasoline production to reach 24.7mn b/d in 2023 with China and the US driving the production growth. We also highlight India and Vietnam, which are expected to add respectively 15 percent and 9 percent of additional gasoline production as they see new refining capacity coming online. However, we note that 14 producers are expected to see declining gasoline production, with South Korea, Russia and Germany seeing the largest cuts of respectively 40,000b/d, 25,300b/d and 14,100b/d,” reads the report released by Fitch Solutions.
The report reveals that alongside with the higher output, the global market will still be undersupplied this year, putting upward pressure on the prices. Fitch Solutions forecasts 1.2 percent increase in gasoline consumption globally, averaging at 25 mn b/d in 2023. Gasoline output will grow by 1.9 percent as compared to 2023, standing at 24.7mn b/d.
“This will bring the supply-demand gap to an average of 290,000b/d - the lowest level since 2017, when the global market switched to undersupply after two years (2015-2016) of a small oversupply,” says Fitch Solutions.
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