The chemical conversion of post-use plastics into ultra-low-sulfur diesel (compared to traditional diesel manufacturing) is environmentally beneficial in several ways. One example is the considerable reduction in the energy used to produce diesel fuel: chemical conversion of post-use plastics into ultra-low-sulfur diesel requires ** percent less energy to produce than traditional diesel manufacturing.

Italy Oil & Gas Downstream Market Outlook

According to our latest research, the global oil & gas downstream market size in 2024 is valued at USD 2.4 trillion, with Italy contributing an estimated USD 56.7 billion to this figure. The global market is expanding at a CAGR of 4.2% and is forecasted to reach USD 3.5 trillion by 2033, driven by rising energy demand, technological advancements, and regulatory shifts. The Italian oil & gas downstream sector is witnessing a transformation, underpinned by modernization of refineries, increasing petrochemical investments, and a growing emphasis on cleaner fuels and digital innovation, making it a pivotal market within Europe’s energy landscape.

One of the primary growth factors for the Italy oil & gas downstream market is the ongoing modernization and upgrade of existing refining infrastructure. Italian refineries are investing heavily in advanced processing technologies to enhance efficiency, reduce emissions, and comply with stringent European Union environmental regulations. This shift is not only improving operational performance but also enabling the production of higher-value, cleaner fuels such as ultra-low-sulfur diesel and bio-blended gasoline. The push for decarbonization has also led to the integration of renewable feedstocks and circular economy practices, positioning Italy as a leader in sustainable refining within the European context. These investments are crucial for maintaining competitiveness in a market that is increasingly shaped by both regulatory demands and shifting consumer preferences toward greener energy solutions.

Another significant driver is the expansion and diversification of the petrochemical sector. Italy’s downstream industry is strategically leveraging its geographical location and established logistics network to support the growth of petrochemical production, particularly in Northern Italy. The demand for petrochemical products, including plastics, fertilizers, and specialty chemicals, is rising due to their essential role in manufacturing, agriculture, and consumer goods. Italian companies are focusing on innovation, investing in advanced catalysts, and adopting process optimization techniques to boost yields and reduce operational costs. This trend is further supported by collaborations with global chemical giants and the adoption of Industry 4.0 technologies, which are enhancing process automation and real-time monitoring, thereby driving productivity and profitability across the sector.

The evolving landscape of storage, distribution, and marketing is also contributing to the robust growth of the Italy oil & gas downstream market. With increasing imports of crude oil and refined products, there is a heightened demand for state-of-the-art storage facilities and efficient distribution networks. Italian companies are upgrading terminal infrastructure and adopting digital supply chain solutions to improve inventory management and ensure timely delivery to end-users. The marketing segment is witnessing a shift toward customer-centric strategies, with a greater focus on premium fuels, loyalty programs, and integrated mobility services. These efforts are aimed at capturing new revenue streams and enhancing brand loyalty in a competitive retail environment. Furthermore, the adoption of alternative fuels, such as LNG and hydrogen, is gradually reshaping the distribution and marketing landscape, aligning with Italy’s long-term energy transition goals.

Regionally, Northern Italy stands out as the powerhouse of the country’s downstream industry, hosting the majority of refining and petrochemical assets, as well as key storage and distribution hubs. This region benefits from proximity to major European markets, a skilled workforce, and robust infrastructure, making it a focal point for both domestic supply and exports. Central and Southern Italy, along with the Islands, are also experiencing growth, particularly in storage and marketing segments, driven by rising energy consumption and investments in infrastructure upgrades. The regional dynamics are further influenced by local policies, economic development initiatives, and the presence of major industry players, ensuring a balanced and resilient downstream sector across the Italian peninsula.

Diesel prices in the United Kingdom rose to more than *** pence per liter in early 2024. The March national average was ***** pence per liter, compared with a price of ***** pence per liter for diesel sold at supermarkets. Hypermarkets dominate motor fuel sales Hypermarkets such as Sainsbury's, Asda, and Tesco have the greatest market share of motor fuel sold in the UK. In 2023, roughly ** percent of all motor fuels were sold at hypermarkets. Diesel more expensive than regular gasoline Although gasoline and diesel are both refined petroleum products, their refining process differs, thus also impacting manufacturing and retail prices. Diesel sold in the UK is required to have an ultra-low sulfur content and also contain a biodiesel component of seven percent. The extra steps required in the production process make diesel a more expensive commodity than gasoline, which trades around ** pence lower.

This statistic displays the production volume of refinery products in Indonesia in 2018. In 2018 the total volume of low sulfur waxy residue produced in Indonesia amounted to approximately ***** million barrels. By comparison, there were approximately ****** million barrels of Automotive Diesel Oil (ADO) produced in Indonesia in 2018.

On July 7, 2025, the price of ultra-low sulfur unleaded petrol (gasoline) in the United Kingdom averaged 133.19 pence per liter. This compared to 140.58 pence per liter for diesel. Diesel prices were consistently higher than petrol/gasoline prices throughout this period, although the margin varied. Reasons for such differences in pricing lie in the refining process and molecular makeup of the products, with diesel requiring more complex refining processes and being an overall heavier liquid. As motor fuel pricing in the UK is not regulated by a monitoring body, there may also be notable differences in prices between retailers and regions. Supermarkets provide lowest fuel prices in the UK In the UK, much of the motor fuel is sold through supermarkets. Large supermarkets, or hypermarkets, account for more than 40 percent of all motor fuel sales in the country. The reason for their popularity often lies in the fact that they offer lower average prices. In the last four years, regular petrol/gasoline sold at supermarkets was up to six pence per liter cheaper than the national average. How UK fuel prices compare to the rest of the world Tied as they are to crude oil prices, motor fuels are generally cheapest in major producing countries, such as Iran, Venezuela, and Russia. In Europe, costs of importing the raw or finished products, in addition to taxes and levies, may hike up pump prices significantly. The UK is often among the countries with the highest petrol/gasoline prices, alongside other large European car markets such as France and Germany.