Argentina Oil Refining Market Overview, 2030

Argentina's oil refining sector is primarily driven by a few key players YPF, Raízen (Shell), and Axion Energy who collectively manage most of the country's refining operations. YPF, the state-controlled oil company, operates three major refineries: La Plata Refinery near Buenos Aires with a capacity of around 189,000 barrels per day, Luján de Cuyo in Mendoza with about 105,000 barrels per day, and Plaza Huincul in Neuquén with roughly 25,000 barrels per day. These refineries account for over half of the country’s refined fuel output. Raízen’s Campana refinery, previously owned by Shell, adds another 84,000 barrels per day, while Axion Energy’s Campana plant refines around 90,000 barrels per day. The distribution of refineries is concentrated in central and western Argentina, with close proximity to consumption hubs and upstream oil fields such as Vaca Muerta. Argentina’s refining capacity is largely self-sufficient and supports nearly all of its domestic fuel demand with minimal reliance on imports. The energy sector operates under strong state oversight, including regulated fuel pricing, subsidies, and policy direction aimed at ensuring energy sovereignty. The refining value chain is closely linked to the Vaca Muerta shale formation, which is being developed to ensure consistent light crude supply to inland refineries. Infrastructure projects such as new pipelines are strengthening this integration. Over the last decade, refining complexity and quality have increased, with ongoing efforts to meet cleaner fuel specifications like ultra-low sulfur diesel. However, the industry also faces challenges from under-investment, equipment aging, and limited private sector incentives due to price controls and macroeconomic uncertainties. While Argentina has not committed to large-scale decarbonization, energy transition pressures are growing, and refiners are beginning to explore efficiency upgrades, digital control systems, and limited hydrogen-based fuel development.

According to the research report ""Argentina Oil Refining Market Overview, 2030,"" published by Bonafide Research, the Argentina Oil Refining market is expected to reach a market size of more than USD 21.84 Billion by 2030. As of 2024, refinery utilization rates at major YPF facilities average around 88–90%, reflecting efficient use of existing infrastructure despite economic turbulence. Total national refining throughput sits close to 525,000 barrels per day, making Argentina one of the few Latin American countries with high refining self-sufficiency. Fuel price caps and currency volatility have long distorted margins, discouraging large-scale foreign investment, although gradual liberalization is under review. Diesel and gasoline remain the dominant refined products, with new demand arising from agricultural machinery and road transportation. The government is pushing refinery upgrades through state-owned investment to meet stricter fuel quality standards, including Euro-VI emissions compliance and targets for ultra-low sulfur diesel. YPF is investing over $600 million into modernizing the Luján de Cuyo refinery to reduce sulfur content and enhance product flexibility. Additionally, fuel blending with biodiesel and ethanol has become a key policy tool to reduce import pressure and align with clean energy goals. Challenges persist in the form of high operational costs, foreign exchange limitations, and difficulties accessing advanced refining technologies. Crack spreads for diesel and gasoline have remained attractive in recent years due to regional fuel shortages, but refining profitability remains highly sensitive to fluctuations in crude oil prices and domestic energy policy. Opportunities for growth include digital transformation of refining operations, efficiency gains through automation, hybrid biofuel production, and integration with expanded pipeline infrastructure connecting Vaca Muerta to coastal export terminals via the proposed Vaca Muerta Sur pipeline project.

In Argentina, diesel leads fuel consumption across sectors, reflecting its critical role in road freight transport, agriculture, and mining industries. Diesel powers trucks, buses, farm machinery, and mining vehicles that underpin much of the country’s economic activity. Gasoline consumption remains stable, mainly supporting urban passenger vehicles in cities like Buenos Aires, Córdoba, and Rosario, where private car ownership remains high despite economic fluctuations. Jet fuel demand is steady but smaller compared to diesel and gasoline, driven by domestic and international flights through key airports such as Buenos Aires Ezeiza, Córdoba, and Bariloche. Asphalt consumption supports ongoing road construction and maintenance projects, vital to infrastructure development in both urban and rural regions. Lubricants maintain consistent demand in industrial sectors, supporting the operation of machinery, vehicles, and equipment. Liquefied petroleum gas (LPG) is widely used in residential households, especially in colder regions such as Patagonia, where it provides a cleaner alternative to biomass or coal for cooking and heating. Fuel oil use remains present in certain industrial applications and as backup fuel for electricity generation, though it is gradually declining due to tightening environmental regulations. The diversity of fuel types in Argentina reflects a balanced energy demand, with diesel dominating transport and industry, gasoline sustaining urban mobility, and LPG growing as a preferred household energy source. The refining sector aims to supply these fuels while adapting product quality to meet national and international standards, supporting Argentina’s evolving energy and environmental goals.

Fuel consumption in Argentina is strongly focused on road transportation, which constitutes the largest share of refined fuel use. Diesel powers freight trucks, buses, and agricultural machinery essential for moving goods and sustaining farming operations across the country’s varied geography. Urban centers such as Buenos Aires, Córdoba, and Rosario rely on gasoline and diesel for personal and commercial transport. Aviation fuel demand centers around major airports including Buenos Aires, Córdoba, and Bariloche, where domestic and international flights support steady jet fuel consumption, especially related to tourism and business travel. The petrochemical industry, concentrated mainly in Buenos Aires and La Plata industrial zones, uses refined products as feedstock for manufacturing plastics and chemical materials. Marine and rail sectors consume residual fuels such as heavy fuel oils to operate coastal shipping lines and freight rail networks that facilitate commodity exports. Residential and commercial LPG usage is widespread, particularly in rural and colder areas where natural gas infrastructure is limited. Government subsidies have supported LPG affordability and adoption as a cleaner cooking fuel. Electricity generation relies minimally on refined fuels, with isolated diesel generators providing power in off-grid or remote locations. Other niche uses include domestic waterways and agricultural irrigation systems, which consistently consume diesel for pumps and small vessels. This sectoral fuel demand mix illustrates Argentina’s multifaceted reliance on refined products across transport, industry, and residential consumption, with diesel firmly established as the backbone fuel.

Argentina’s refining feedstock primarily comes from domestic crude oil, with increasing production from unconventional reserves such as the Vaca Muerta shale formation, along with conventional basins in Neuquén and Cuyo. The rise in light-tight oil and shale crude supplies has expanded local feedstock availability, reducing reliance on imported crude oil. Most of Argentina’s refineries process domestic crude, supported by pipelines and logistics networks managed by companies like YPF and Petrobras Argentina. Imported crude volumes are limited and used mainly to optimize refinery blends and maintain operational flexibility during periods of local supply fluctuation. Natural gas liquids (NGLs) and other alternative feedstocks have minimal presence in Argentina’s refining operations. While biofuels such as ethanol and biodiesel contribute to the fuel supply, they are produced and blended downstream rather than integrated into refinery feedstock inputs. Biomass or coal tar are not utilized as refinery feedstock, reflecting the country’s focus on hydrocarbon-based crude resources. Government policies encourage development of domestic shale reserves to strengthen crude supply security and refinery throughput. Feedstock quality and availability directly influence refinery performance and product yields, with operators balancing domestic production dynamics and market conditions. Argentina’s feedstock strategy centers on maximizing use of indigenous crude resources while maintaining flexibility to blend or supplement inputs as needed to meet fuel quality and production targets.

Argentina’s refinery sector includes a mix of conversion refineries and older hydro-skimming plants. The La Plata refinery, operated by YPF, is the country’s largest conversion facility, equipped with fluid catalytic cracking (FCC) and hydrocracking units that increase output of higher-value fuels and cleaner products. Luján de Cuyo is another significant conversion refinery featuring desulfurization and octane improvement technologies that help meet stricter environmental standards. Despite these modern facilities, some smaller plants continue to operate primarily as hydro-skimming refineries, focusing on atmospheric distillation and limited upgrading processes. These less complex refineries produce basic fuel grades but face challenges related to aging equipment and limited product flexibility. Recent investments aim to upgrade refinery capacity and quality by reducing sulfur content and expanding hydrogen treatment units. Technological modernization efforts also explore integration of renewable blending, such as biofuels, to meet environmental commitments. While Argentina does not operate deep conversion refineries with extensive residue upgrading or coking capacity comparable to larger global hubs, incremental improvements are enhancing operational efficiency and compliance with evolving fuel regulations. Operators balance capital expenditure with market demand and regulatory pressures, gradually transitioning toward more complex refining configurations capable of delivering cleaner fuels. These efforts align with Argentina’s broader energy goals to improve fuel quality, reduce environmental impact, and increase domestic value addition in the refining sector.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Oil Refining Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fule Type
• Gasoline
• Diesel/Gasoil
• Jet Fuel
• LPG
• Fuel Oil
• Others (Lubricants, Asphalt)

By Application
• Road Transportation
• Aviation
• Marine Bunker
• Petrochemical Industry
• Residential & Commercial
• Electricity Generation
• Others (Rail & Domestic Waterways, Agriculture)

By Feedstock
• Crude Oil
• Natural Gas Liquids (NGLs)
• Biomass
• Others (Coal Tar, etc.)

By Complexity Type
• Topping
• Hydro-skimming
• Conversion
• Deep Conversion
• Others Show more