Fuel Oil News January 2020 | Page 9

Prices & Margins Average kero margins 2019 The source of the graphs on this page is the Price Totem data published each month in Fuel Oil News. Figures for the Republic of Ireland are adjusted by the exchange rate to be comparable to pence per litre. Margins on average rose across all grades vs 2018; notably, kero was up across the board, by as much as 2ppl on 2018 prices. The regional spread of gasoil margins widened to 3ppl vs 2018’s 2ppl, while diesel was largely unchanged, sticking to a range of 2.5ppl to 4ppl. Regional margins Kero margins continued to be highest in the South East and North East at 11ppl and 8ppl respectively, while Northern Ireland saw margins fall by up to 1ppl on both kero and gasoil grades vs 2018 averages. Scotland saw the highest diesel margins at 4ppl as the Midlands retreated towards 3.5ppl. By comparison, the North West saw generally the lowest margins across all products. 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 Prices fluctuate Kero Dec 2018 Dec 2019 Inc/Dec 37.18 37.66 +0.48 Gasoil 47.43 48.44 +1.01 Derv 95.00 96.15 +1.15 Average gas oil margins 2019 6.00 Despite being a fairly volatile year that saw a wholesale price spread of 8ppl across all grades, 2019’s average prices for kero, diesel and gasoil fell overall (albeit less than 1ppl) vs 2018. Having been suppressed for most of the year due to low demand, refined product prices picked up during the second half of the year, notably reaching a high in September due to a 5% drop in production caused by attacks on Saudi Arabia. 5.00 4.00 3.00 2.00 Platts buying prices 1.00 Average buying prices 2019 – kero and gas oil 65.00 60.00 55.00 50.00 Average ULSD margins 2019 45.00 40.00 6.00 110.00 Average buying prices 2019 – ULSD 4.00 3.00 2.00 100.00 90.00 1.00 80.00 60.00 70.00 5.00 30.00 35.00 Fuel Oil News | January 2020 9