Fuel Oil Market Report 2026

The fuel oil market size has grown steadily in recent years. It will grow from $196.03 billion in 2025 to $202.98 billion in 2026 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to growth of thermal power plants, expansion of maritime trade, historical dependence on fuel oil for heating, widespread availability of crude oil derivatives, industrialization in developing economies.

The fuel oil market size is expected to see steady growth in the next few years. It will grow to $238.18 billion in 2030 at a compound annual growth rate (CAGR) of 4.1%. The growth in the forecast period can be attributed to demand from marine bunkering sector, growth in backup power generation, refinery residue optimization, energy demand in remote locations, continued use in heavy industries. Major trends in the forecast period include rising use of heavy fuel oil in marine bunkering, increasing demand for fuel oil in power generation, growing blending of fuel oil for industrial applications, shift toward low sulfur fuel oil grades, stable demand from remote and off grid energy systems.

The rising demand for oil is expected to drive the growth of the fuel oil market in the coming years. In the petroleum industry, oil refers to crude oil, a naturally occurring mixture of hydrocarbons and other organic compounds found in subsurface rock formations. Sectors such as transportation, industrialization, and power generation have high energy needs, with growing global populations, economic development, and seasonal factors also influencing fuel oil demand. For example, in October 2024, the Energy Information Administration, a U.S.-based federal agency responsible for collecting and disseminating energy information, reported that global production of petroleum and other liquid fuels will increase by 2 million barrels per day (b/d) in 2025, compared to a growth of just 0.5 million b/d in 2024. Additionally, in June 2023, the International Energy Agency, a France-based intergovernmental organization, projected that global oil demand would reach 105.7 million barrels per day (mb/d) by 2028, marking a cumulative increase of 6% from 2022. As a result, the growing demand for oil is driving the expansion of the fuel oil market.

The leading companies in the fuel oil market are embracing cutting-edge technologies like eFining to fortify their market standing. eFining technology involves a methanol-to-jet fuel (MTJ) process, enabling the reliable and large-scale conversion of eMethanol to eSAF (electronic sustainable aviation fuel). In May 2023, Honeywell International Inc., a US-based conglomerate corporation, unveiled its UOP eFining technology - a revolutionary method for generating sustainable aviation fuel (SAF) from captured carbon dioxide (CO2) and renewable hydrogen. This technology surpasses others in terms of efficiency and scalability, positioning it as a prime choice for adoption in the aviation sector. Its efficiency, cost-effectiveness, and scalability make it a pivotal tool in meeting the escalating demand for renewable fuels, particularly SAF. This advancement aligns with global endeavors to expedite the integration of sustainable aviation fuels and attain ambitious decarbonization objectives in the aviation industry.

In December 2024, Gulf Oil Lubricants India Limited, an India-based manufacturing company, entered into a partnership with Nayara Energy to reinforce their collaboration within the automotive and industrial lubricants ecosystem. Through this partnership, Gulf Oil Lubricants India seeks to broaden its market presence and improve product availability by utilizing Nayara Energy’s extensive fuel retail network, while jointly promoting the growth of premium lubricant solutions across India. Nayara Energy Limited is an India-based manufacturing and energy company engaged in refining, fuel retailing, and integrated downstream petroleum operations, with a strong nationwide footprint supported by its expanding network of fuel stations.

Major companies operating in the fuel oil market are Royal Dutch Shell plc, TotalEnergies SE, BP p.l.c., Chevron Corporation, Marathon Petroleum Corporation, Phillips 66 Company, Saudi Aramco, ENI S.p.A., Valero Energy Corporation, PJSC Rosneft Oil Company, Reliance Industries Limited, Indian Oil Corporation, Petronas (Petroliam Nasional Berhad), Repsol S.A., Pemex (Petroleos Mexicanos), OMV Group, Petrleos de Venezuela S.A (PDVSA), SK Innovation Co. Ltd., Abu Dhabi National Oil Company (ADNOC), Bharat Petroleum Corporation Limited (BPCL), Surgutneftegas PJSC, Hess Corporation, QatarEnergy, Cabot Oil & Gas Corporation, Sinopec Corp., Exxon Mobil Corporation, PJSC Gazprom, OAO Lukoil, National Iranian Oil Company (NIOC), Kuwait Petroleum Corporation (KPC)

Asia-Pacific was the largest region in the fuel oil market in 2025. Middle-East is expected to be the fastest-growing region in the forecast period. The regions covered in the fuel oil market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the fuel oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The fuel oil market consists of sales of jet fuel, furnace oil, bunker fuel, industrial fuel oil, marine fuel oil, storage tanks, bitumen, asphalt, and kerosene. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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