Brazil Oil Refining Market Overview, 2030

Brazil’s oil refining industry is overwhelmingly dominated by Petrobras, which controls over 95% of national refining capacity through 13 major refineries including REPLAN (Paulínia), REVAP (São José dos Campos), REDUC (Duque de Caxias), and RLAM (Bahia). The nation’s total refining capacity stands around 2.3–2.4 million barrels per day (b/d), distributed across key hubs in Southeast and Northeast Brazil, aligning with oil production locations such as the pre-salt offshore basins. These facilities are vital for supplying domestic fuel needs including gasoline, diesel, jet fuel, LPG, and petrochemical feedstocks and for supporting exports, as Brazil continues exporting middle distillates and bunker fuels via ports like Santos and Paranaguá. Refining infrastructure is deeply integrated into the broader energy value chain, with petrochemical operations and power generation complementing fuel production. Over the years, Brazil's refining sector has evolved to enhance operational efficiency, upgrade complexity, and expand low-sulfur diesel output. Geopolitical influences, such as OPEC+ production strategies, global crude price volatility, and increased demand from emerging markets, shape crude sourcing and export strategies. Energy transition pressures are growing, pushing Petrobras to invest in biofuels (notably ethanol and biodiesel) and digital refinery upgrades aimed at process optimization. Recent developments include efforts to partially privatize select assets under regulatory scrutiny e.g., potential reacquisition of RLAM and large-scale refinery modernization programs to maintain competitiveness and improve environmental compliance

According to the research report ""Brazil Oil Refining Market Overview, 2030,"" published by Bonafide Research, the Brazil Oil Refining market is anticipated to grow at more than 5.31% CAGR from 2025 to 2030. In 2024, Petrobras reported a record-high refining output gasoline production reached 24.4 billion liters and diesel output hit 26.3 billion liters, with refinery utilization at 93.2%, up from 92% in 2023. Brazil’s refining system processes approximately 2.3 million b/d, though some facilities operate underutilized. The demand drivers include transportation growth especially agriculture and road freight accounting for over 60% of refined product use urbanization, and industrial expansion. Refinery upgrades focus on producing low-sulfur diesel (S‑10) to meet IMO 2020 marine fuel standards, as Brazil adds 120,000 bpd of S‑10 diesel output in 2025 across REPLAN, REVAP, and Abreu e Lima refineries, with plans for further expansion. Regulatory support for renewable diesel and biofuels including ethanol blending and biodiesel mandates fosters new opportunities but also challenges regarding feedstock logistics and costs. Refining margins and crack spreads remain volatile amid global crude price swings and competition from imports of light fuels. Restraints include aging assets, high emissions intensity, overcapacity risk, and capital constraints. Still, opportunities persist in hybrid operations combining traditional refining with renewable diesel and digital technologies to boost efficiency and reduce carbon footprints. Challenges include feedstock price volatility, ESG compliance pressures, and aligning investments with Brazil’s broader energy transition roadmap amidst mounting global environmental scrutiny.

Brazil’s fuel consumption by type reveals distinct trends shaped by government policies, economic sectors, and resource endowments. Diesel holds a dominant share of fuel consumption, accounting for approximately 40% of the total fuel use across the country. This high diesel demand stems from Brazil’s reliance on diesel-powered vehicles in road transport, agriculture, and freight logistics, particularly in rural and industrial regions where heavy-duty transport is essential. Conversely, gasoline consumption is on a gradual decline, largely due to Brazil’s extensive ethanol blending program that uses E27 to E100 blends in passenger vehicles. The country is a global leader in bioethanol production, which has displaced pure gasoline demand in urban and rural areas. Jet fuel consumption is stable and linked to the recovery and growth of domestic and international aviation, with key consumption hubs including São Paulo, Brasília, and Rio de Janeiro airports. Fuel oil remains in use mainly for industrial applications and for export, though its overall share has declined with the rise of cleaner fuel mandates and shifting energy mixes. Asphalt demand is robust, driven by large-scale public infrastructure projects such as highway expansions and urban development. Liquefied petroleum gas (LPG) maintains strong popularity, especially in Northern Brazil, where residential use is supported by government subsidy programs aimed at increasing access to cleaner cooking and heating fuels. Lubricants and other refinery by-products support Brazil’s extensive industrial and manufacturing sectors. These product usage trends reflect Brazil’s unique blend of traditional fossil fuel reliance alongside aggressive biofuel integration and infrastructure-driven fuel demand growth.

Fuel consumption patterns in Brazil’s key economic sectors highlight the country’s energy demands and government priorities. Diesel fuel use dominates the agriculture sector, road transportation, and logistics, underpinning Brazil’s extensive farming operations and large freight networks. The agriculture sector’s mechanization and transportation needs drive consistent diesel demand, while road transport fuels support passenger vehicles and commercial trucking across the vast territory. Jet fuel demand is concentrated at major airports including São Paulo’s Guarulhos, Brasília International, and Rio de Janeiro-Galeão, which serve both domestic routes and international flights. The recovery of air travel post-pandemic has stabilized jet fuel consumption. Marine fuels are important for both export activities and regional port operations, supporting Brazil’s extensive coastline and maritime trade routes, key marine fuel ports include Santos, Paranaguá, and Rio Grande. Petrochemical industry demand focuses on naphtha feedstock consumption, concentrated in southeastern industrial clusters such as São Paulo and Rio de Janeiro, where petrochemical complexes supply plastics and chemicals markets. Residential LPG consumption is driven by national subsidy programs designed to increase fuel affordability and reduce biomass and kerosene use, especially in low-income and remote communities. Electricity generation’s use of refined fuels is relatively limited but present in off-grid and industrial power applications. Other niche uses include rail transport and domestic waterways, supporting agricultural logistics. These sectoral consumption patterns underscore the strategic role of refined fuels in Brazil’s economy and energy landscape.

Brazil’s refinery feedstock landscape is shaped by a strong domestic crude oil base and selective import practices. The country primarily relies on crude oil produced from the prolific pre-salt basins offshore, including major fields such as Búzios and Tupi. These reserves produce predominantly heavy-sweet crude that supplies the country’s refining infrastructure. Domestic crude contributes the majority of feedstock needs, supporting Brazil’s ambition to increase refinery self-sufficiency. Imports of crude oil are used selectively for blending purposes and to balance refinery feedstock slates, enabling flexibility in operations and product quality management. The country has yet to integrate significant biomass or alternative feedstocks into refinery processes, although biofuels play a major role in the fuel supply chain downstream. Refining operations must adapt feedstock sourcing in response to global price fluctuations, export commitments, and national pricing policies aimed at maintaining competitive market positioning. Petrobras, the state oil company, manages most refinery feedstock logistics and supply, balancing domestic production with import requirements. While biofuel blending is robust in fuel consumption, refinery feedstock diversification towards biomass or synthetic feeds remains limited. Brazil’s feedstock strategy leverages abundant domestic heavy-sweet crude, supplemented by strategic imports, to ensure refinery operational efficiency and product quality. Ongoing investments focus on enhancing feedstock flexibility through advanced blending technologies and infrastructure upgrades. These efforts aim to support Brazil’s evolving energy transition goals while maintaining strong refining margins.

Brazil’s refinery complexity landscape features a mix of advanced and aging facilities, reflecting the country’s evolving energy policies and investment climate. Leading the sector are high-conversion refineries such as REPLAN (Paulínia) and REVAP (São José dos Campos), which feature fluid catalytic cracking (FCC) and hydrocracking units enabling deep conversion of heavy feedstocks into high-value products like diesel, gasoline, and jet fuel. These refineries support Brazil’s fuel quality mandates, including the production of ultra-low sulfur diesel (S-10) and biofuel blending requirements. Several older hydro-skimming refineries operate in the country, many undergoing modernization to improve efficiency and environmental performance. Petrobras has been actively investing in upgrading units to meet stricter sulfur limits and to facilitate hydrotreated vegetable oil (HVO) blending, supporting renewable diesel production. The ongoing privatization process of some refineries may catalyze further complexity upgrades by independent operators seeking to enhance product slate flexibility and environmental compliance. Despite robust upgrading efforts, challenges persist due to the aging infrastructure of many units and the need to balance investment with market dynamics. The focus on integrating biofuel blending and adopting hybrid refining models aligns with global decarbonization trends and Brazil’s climate commitments. The refinery configuration in Brazil represents a transitional stage combining deep conversion capabilities with modernization efforts aimed at cleaner fuels and higher operational efficiency.

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