Oman’s Refinery Output Rises 1.6%: Implications for Investors and the Energy Market

• By Oman Market
• July 28, 2025July 29, 2025
• Oman petrochemicals refinery output
• With 0 comments

Muscat: By the end of June 2025, the total refinery output in Oman saw a modest increase of 1.6 percent, as reported by the National Centre for Statistics and Information (NCSI). However, there was a significant decline in automotive fuel production, dropping 17.1 percent in June compared to the previous month.

Production of regular motor fuel (91) rose by 11.5 percent, totaling 8,659,500 barrels, compared to 7,767,900 barrels during the same period in 2024. Sales for this category increased by 2 percent to 6,964,500 barrels, while exports grew by 6.1 percent to 1,494,600 barrels. Conversely, production of premium motor fuel (95) fell by 2.2 percent to 6,418,400 barrels from 6,559,500 barrels a year prior. Despite this decline, sales edged up by 0.9 percent to 6,469,600 barrels, and exports surged by 20.6 percent to 690,700 barrels.

Gas oil (diesel) production experienced a 3.8 percent increase, reaching 16,621,400 barrels, up from 16,166,600 barrels last year. Sales rose by 5.8 percent to 7,213,700 barrels, although exports fell by 5.5 percent to 8,550,600 barrels. Jet fuel output declined by 13.1 percent to 4,945,800 barrels, with sales dropping 6.4 percent to 1,867,600 barrels, and exports decreasing by 16.3 percent to 3,019,000 barrels.

Liquefied petroleum gas (LPG) production remained nearly unchanged, with a slight increase of 0.2 percent to 3,764,500 barrels. Sales saw a notable rise of 22.2 percent, reaching 1,944,400 barrels, while exports of LPG plummeted by 60.3 percent, falling to 111,500 barrels from 280,700 barrels a year earlier.

In the petrochemicals sector, benzene production rose by 3.1 percent to 86,000 metric tonnes, and paraxylene output increased by 6.8 percent to 283,000 metric tonnes. Notably, polypropylene production surged by 73.4 percent to 176,600 metric tonnes, although sales for this product dropped by 9.2 percent to 15,400 metric tonnes.

On the export front, gasoline exports slightly increased by 0.4 percent to 81,900 metric tonnes, while paraxylene exports experienced robust growth of 22.8 percent, reaching 312,700 metric tonnes. Polypropylene exports soared by 61.6 percent to 131,200 metric tonnes, indicating strong international demand for these products. — ONA

Special Analysis by Omanet | Navigate Oman’s Market

The modest 1.6% increase in overall refinery output signals a resilient market; however, the 17.1% drop in automotive fuel production poses potential challenges for businesses reliant on oil and automotive sectors. Smart investors should assess opportunities in growing segments like polypropylene, where production surged by 73.4%, while also considering risks in declining fuel sales and the need to adapt strategies to shifting market demands.