United Kingdom Bunker Fuel Market Overview, 2030

The United Kingdom, as a key player in global maritime trade, relies significantly on bunker fuel to fuel its vast shipping industry, which is integral to both the UK economy and international trade. The demand for bunker fuel in the United Kingdom is heavily influenced by factors such as global trade volumes, growth in the shipping industry, and the expansion of the maritime fleet. The UK's position as a major trading nation, with significant ports like London, Southampton, and Liverpool, makes it a key maritime hub. Bunker fuel is produced primarily from the heavier fractions of crude oil and is categorized into grades such as IFO (Intermediate Fuel Oil), MDO (Marine Diesel Oil), and MGO (Marine Gas Oil), depending on the viscosity and sulfur content. The UK, like other countries, imports a significant amount of bunker fuel to meet the needs of its shipping industry. Key bunker fuel suppliers in the United Kingdom include global energy giants such as BP, Shell, and ExxonMobil, along with specialized bunker companies like KPI Bridge Oil, and Bunkernet. These companies have established infrastructure in key UK ports, including those in London, Aberdeen, and Felixstowe. Ports in the UK serve as fueling hubs where ships can refuel during their journeys, and each of these hubs provides a range of bunker fuel types to cater to the different needs of ships. The impact of emissions regulations on bunker fuel quality and price in the UK is significant. The need to produce and supply compliant, low-sulfur bunker fuels has led to higher production costs for refineries, which are then passed on to shipping companies.

According to the research report United Kingdom Bunker Fuel Market Overview, 2030, published by Bonafide Research, the United Kingdom Bunker Fuel market is expected to reach a market size of more than USD 3.86 Billion by 2030. The International Maritime Organization (IMO) 2020 regulations represent one of the most significant environmental policy shifts in the global shipping industry, aiming to reduce the environmental impact of maritime transport. Effective from January 1, 2020, the IMO imposed a global sulfur limit of 0.5% sulfur content in marine fuels, down from the previous 3.5% allowed under older regulations. In practical terms, shipping companies must switch from traditional high-sulfur fuel oils (HSFO) to cleaner alternatives, such as Very Low Sulfur Fuel Oil (VLSFO), Marine Gas Oil (MGO), or Marine Diesel Oil (MDO). Compliance with the IMO 2020 standards has forced refineries to alter their production processes, and the demand for low-sulfur bunker fuels has surged globally, including in the United Kingdom, making these cleaner fuels more expensive. The storage and distribution infrastructure needs to be adapted to handle the newer low-sulfur fuels. Since ports in the UK, such as those in Southampton, Felixstowe, Aberdeen, and London, see varying levels of bunker demand, each port must manage fuel storage and supply logistics effectively to meet fluctuating needs. Given the higher cost of low-sulfur fuels, companies also need to manage price volatility while ensuring timely deliveries, with some vessels requiring frequent fuel replenishments during long-haul voyages. As for market share, key players in the United Kingdom's bunker fuel market include international oil majors like BP, Shell, and ExxonMobil, alongside specialized bunker suppliers such as KPI Bridge Oil and Bunkernet. A prominent example is the disruption caused by the COVID-19 pandemic, which led to a reduction in global shipping traffic and a subsequent slowdown in bunker fuel demand. During such crises, the supply of bunker fuel can become erratic, as refineries and logistics networks may be delayed or shut down due to workforce shortages, lockdowns, or shipping restrictions.

Despite the shift toward cleaner fuels, HSFO still has some demand in regions or for vessels that have invested in scrubbers, which continue to use this cheaper, high-sulfur fuel. In the United Kingdom, the use of HSFO is increasingly limited to a specific subset of vessels operating outside Emission Control Areas (ECAs) or to those equipped with scrubbers. Marine Gas Oil (MGO), a more refined and cleaner alternative to HSFO, is a popular choice for ships seeking compliance with the IMO 2020 sulfur regulations. MGO has lower sulfur content (typically below 0.1%) and is often used by vessels that do not have scrubber technology or those operating in Emission Control Areas (ECAs), such as the waters surrounding the UK. In the UK, the use of MGO is common in shorter-distance shipping, ferries, and luxury cruise liners, where stricter environmental standards are in place. LNG is a cleaner fuel compared to traditional marine fuels because it produces negligible sulfur oxide, nitrogen oxide, and particulate emissions. It is considered a future-proof option for vessels aiming to meet stricter emissions targets. LNG-powered ships are equipped with cryogenic tanks that store the gas in liquid form at extremely low temperatures, allowing ships to use it as a fuel source. The growing interest in LNG is being driven by global emissions reduction targets, as well as the UK’s commitment to achieving net-zero emissions by 2050. Other Fuel Types include alternative fuels that are being explored for future maritime transport, such as biofuels, methanol, hydrogen, and even ammonia. These fuels are still in the early stages of adoption, but they hold promise as sustainable and low-emission alternatives to traditional marine fuels.

In the United Kingdom, container ships calling at major ports like Felixstowe, Southampton, and London Gateway increasingly rely on low-sulfur fuels to ensure compliance with environmental standards. The trend towards dual-fuel engines powered by LNG is also gaining momentum for newbuild container ships, reflecting the global shift towards more sustainable fuel options. Bulk Carriers, which transport raw materials such as coal, grain, and iron ore, also represent a significant portion of bunker fuel demand in the UK. These ships typically operate on slower speeds and often travel longer distances across international trade routes. Bulk carriers often use High Sulfur Fuel Oil (HSFO) or VLSFO, depending on the regulatory environment in which they operate. Bulk carriers frequently dock at ports like Port of Immingham and Port of Tyne, both of which are key hubs for handling bulk cargo in the UK, and bunker fuel supply in these areas is integral to maintaining shipping operations. Oil tankers often operate on Marine Gas Oil (MGO) or VLSFO to ensure compliance with international sulfur limits, especially when operating in ECAs like the North Sea. Chemical Tankers, are highly regulated due to the nature of their cargo, which often includes sensitive or dangerous substances that require careful handling and stringent safety standards. Ports such as Teesport and Port of Liverpool cater to chemical tankers, providing specialized fueling services to ensure compliance with both environmental and safety regulations. General Cargo Ships are versatile vessels that transport a broad range of goods, typically operate on more flexible routes and are often smaller than the large container ships or oil tankers, requiring smaller volumes of fuel. Other vessels that do not fall into these specific categories, such as ferries, offshore support vessels, and luxury cruise ships, also play a role in the UK bunker fuel market. Ferries, particularly those operating between the UK and mainland Europe, are typically smaller vessels that use MGO or LNG for cleaner operations in environmentally sensitive regions.

Oil Majors like BP, Shell, and ExxonMobil dominate the UK bunker fuel market due to their extensive infrastructure, global supply networks, and deep integration into the refining and shipping industries. These companies typically control significant portions of the market because they not only refine crude oil into bunker fuel but also have well-established logistics systems that ensure timely and consistent delivery to major ports across the UK, such as Southampton, Port of London, and Aberdeen. Their global networks allow them to offer 24/7 bunkering services at multiple UK ports, ensuring flexibility and reliability for international shipping lines. In the UK, large independent distributors such as KPI Bridge Oil and Bunkernet are well-positioned to serve a wide range of vessels, from container ships to oil tankers and bulk carriers, by securing competitive prices and managing the complex process of fuel delivery across different ports. These distributors often have contracts with major oil suppliers but have more flexibility in terms of fuel sourcing and can often offer better price negotiation and fuel customizations. Small Independent Distributors typically serve a more niche market within the UK bunker fuel landscape. These distributors focus on specific ports, regions, or even particular customer segments, often catering to smaller vessels, such as ferries, pleasure crafts, or regional cargo ships. Although they lack the scale and resources of oil majors or large distributors, small independents are highly valued for their personalized service and flexibility in meeting the unique needs of local shipping operators.

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

Aspects covered in this report
• Bunker Fuel 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 Type
• High Sulfur Fuel Oil (HSFO)
• Marine Gas Oil (MGO)
• Liquefied Natural Gas (LNG)
• Other Fuel Types

By Application
• Container Ships
• Bulk Carriers
• Oil Tankers
• Chemical Tankers
• General Cargo Ships
• Others

By Distribution Channel
• Oil Majors
• Large Independent Distributors
• Small Independent Distributors

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.