Italy Oil Refining Market Overview, 2030

Italy’s oil refining industry is characterized by a network of key refineries operated primarily by major players such as ENI, Saras, and API. ENI is the dominant force in the sector, managing large and complex refineries like Sannazzaro and Taranto, while Saras operates the significant Sarroch refinery near Cagliari, and API manages facilities including the refinery in Ancona. Italy’s refining capacity is concentrated in strategically important Mediterranean locations, making the country a crucial refining and transshipment hub for southern Europe and North Africa. These refineries process a mix of domestic and imported crude, supporting Italy’s diverse energy demands across transportation, industry, and petrochemical sectors. The country’s refining infrastructure is integrated with petrochemical complexes, enabling the production of fuels and chemical feedstocks. Refinery utilization rates in Italy fluctuate due to market conditions and ongoing maintenance, but the sector remains critical for national energy security. Italy’s regulatory environment is shaped by the national Integrated Energy and Climate Plan (PNIEC), which aligns with European Union directives aimed at reducing carbon emissions and increasing renewable energy use. Geopolitical events, including supply disruptions from key crude exporters and OPEC+ production decisions, impact crude availability and refinery economics. Italy’s refining sector also faces increasing pressure from the energy transition, with growing emphasis on decarbonization, clean fuels, and compliance with stricter environmental standards.

According to the research report, ""Italy Oil Refining Market Overview, 2030,"" published by Bonafide Research, the Italy Oil Refining market is expected to reach a market size of more than USD 63.54 Billion by 2030. Italy’s oil refining system is among the largest in Europe, with an installed refining capacity of approximately 1.6 million barrels per day, spread across 13 refineries as of 2024. Key operators include Eni, Saras, ISAB-Lukoil (now under Italian control), Q8 (Kuwait Petroleum Italia), and Tamoil. Major refinery hubs include Sannazzaro de’ Burgondi, Gela, Priolo Gargallo, Trecate, and Porto Marghera. The Sannazzaro refinery, operated by Eni, is the country’s most advanced and has a capacity of 200,000 barrels per day. It includes a high-complexity EST (Eni Slurry Technology) unit, which allows conversion of heavy residues into light fuels. Italy imports nearly all of its crude oil due to limited domestic production, sourcing from countries such as Iraq, Libya, Azerbaijan, Saudi Arabia, and Algeria.. The country’s refineries process both light sweet and heavy sour crudes, offering feedstock flexibility. Diesel remains the dominant refined product, followed by gasoline, jet fuel, LPG, lubricants, and bitumen. Inland and coastal pipelines, such as the SARPOM pipeline, connect refineries to major demand centers and distribution hubs. The Taranto and Trieste ports serve as key import terminals for crude. The downstream infrastructure is supported by a retail network of over 20,000 fuel stations, while refined product exports reach neighboring countries like Switzerland, Austria, and France. Despite capacity rationalization over the past decade, utilization rates remain above 80%, driven by refinery upgrades and conversion investments such as the bio-refinery conversions at Gela and Porto Marghera by Eni.

In Italy, jet fuel demand has been steadily increasing, especially at major international airports in Rome Fiumicino and Milan Malpensa, reflecting the recovery in passenger and cargo air traffic after COVID-19 disruptions. These airports serve as important European hubs, and the resurgence in air travel supports higher jet fuel consumption. Diesel and gasoil remain critical fuels for industrial operations, freight transport, and logistics, particularly in manufacturing centers in Northern Italy and agricultural areas in the South. Diesel volumes have seen moderate fluctuations linked to economic activity but remain a key fuel for trucking and off-road machinery. Gasoline volumes have recovered post-pandemic, supported by private vehicle use in urban and suburban regions, as Italy’s car ownership remains high despite environmental regulations encouraging electric mobility. Asphalt demand is stable, underpinned by ongoing public infrastructure and road construction projects funded by regional and EU development programs. LPG consumption, mainly for residential cooking and heating in rural and less urbanized areas, maintains a steady but relatively small share of the market. Fuel oil use has declined gradually, reflecting shifts towards cleaner fuels and natural gas for heating and power generation. Lubricants and specialty fuels continue to support industrial machinery and transportation sectors, although their growth remains modest. Recent developments include refinery adjustments to produce more low-sulfur fuels in line with European directives and increased testing of biofuel blends to reduce carbon footprints. Italian refiners are also adapting to supply chain changes due to decreased reliance on Russian crude, optimizing fuel output for both domestic consumption and exports.

Transportation fuels dominate Italy’s refined product consumption, encompassing private passenger vehicles, commercial trucking, and public transport fleets. Road transportation remains the largest end-use sector, with diesel and gasoline accounting for most of the fuel consumed. Marine bunkering plays a significant role in major coastal ports such as Genoa, Venice, and Naples, where fuels supply commercial shipping and cruise liners navigating the Mediterranean. These ports have also been adapting to IMO 2020 sulfur regulations by offering very low sulfur fuel oils (VLSFO) and exploring LNG bunkering options. Italy’s petrochemical hubs, notably in Priolo on Sicily and Porto Marghera near Venice, rely heavily on refinery outputs like naphtha and other light hydrocarbons as feedstock for chemical manufacturing. These complexes contribute substantially to the industrial demand side. In southern Italy, diesel remains the fuel of choice for agriculture and rural transport, supporting machinery and crop production in this region. Residential and commercial use of refined fuels is shrinking gradually due to increased electrification and natural gas adoption, although LPG still serves rural households where gas pipeline access is limited. Electricity generation in Italy largely depends on renewables and gas, limiting refinery fuel use in power plants. Other niche sectors such as rail and domestic waterways use diesel in moderate quantities. Recent developments include greater integration of sustainable fuels in transportation and pilot projects supporting bio-based fuel uptake in industrial applications.

Italian refineries rely heavily on a diverse crude oil import mix, sourcing significant volumes from Libya, Saudi Arabia, and Azerbaijan, which offer medium to heavy sour grades suited for deep conversion refining. The country’s refining sector has reduced dependence on Russian crude following geopolitical conflicts and EU sanctions starting in 2022, prompting shifts in procurement to Middle Eastern and African suppliers. Heavy and sour crude blends are preferred because they match refinery configurations focused on fluid catalytic cracking (FCC) and hydrocracking units, which maximize output of high-value fuels such as diesel and jet fuel. Pilot scale testing of hydrotreated vegetable oils (HVO) and biocrudes is ongoing at key Italian refinery sites as part of the broader energy transition push and compliance with EU renewable fuel mandates. Natural gas liquids (NGLs) contribute to LPG production and petrochemical feedstock but represent a smaller share compared to crude oils. Coal tar and other residual feedstocks are minimal, reflecting environmental and regulatory restrictions. Refineries continue adjusting feedstock blends in response to global price volatility and supply disruptions. Recent developments focus on increasing feedstock flexibility, expanding biofuel processing capabilities, and upgrading facilities to handle renewable and alternative inputs in line with Italy’s carbon reduction commitments.

Italy’s refining industry features a range of refinery complexities, with the Sannazzaro refinery among the most complex in Europe due to its advanced electrostatic desalter (EST) and extensive conversion units, including fluid catalytic cracking and hydrocracking. Deep conversion refineries dominate the landscape, allowing Italian operators to process heavy and sour crudes efficiently into lighter, cleaner transportation fuels and petrochemical feedstocks. Facilities have invested in carbon capture feasibility studies and pilot projects at major ENI sites to reduce greenhouse gas emissions and comply with European environmental regulations. The sector is increasingly focused on hybrid refining models that integrate conventional processing with bio-refining technologies to produce sustainable fuels like renewable diesel and sustainable aviation fuel (SAF). Upgrades to sulfur removal, hydrogen production, and waste heat recovery are underway to enhance energy efficiency and lower the carbon footprint of operations. Topping and hydro-skimming refineries are largely phased out or repurposed due to their limited capacity to produce low-sulfur and renewable fuels. Italy’s refining infrastructure is mature but undergoing modernization to address environmental challenges and maintain competitiveness in the European market. Digitalization and automation investments are also increasing to optimize processes and reduce operational costs. Recent developments include ongoing expansion of renewable fuel capacities and evaluation of carbon capture and storage technologies as part of Italy’s commitment to net-zero emissions by 2050.

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