United Kingdom Oil Refining Market Overview, 2030

The United Kingdom’s oil refining industry is centered around several key refinery sites, including Fawley in Hampshire, owned by ExxonMobil, Grangemouth in Scotland, operated by Ineos, and Stanlow near Liverpool, run by Essar Oil. These facilities serve as critical fuel suppliers not only for the UK but also for nearby European markets. However, the number of operational refineries in the UK has declined steadily over the past two decades due to shifting market conditions, aging infrastructure, and rising operational costs. This consolidation reflects a broader European trend as some refineries close or convert to terminals amid tightening environmental regulations and changing fuel demand. The UK refining sector is also affected by geopolitical and economic factors such as Brexit, which introduced new cross-border trade complexities and tariff uncertainties impacting fuel supply chains between the UK and the European Union. Private companies like Essar, ExxonMobil, and Ineos remain the dominant operators, focusing on modernizing assets to meet stricter fuel quality standards and maintain competitiveness. The country’s refineries primarily produce gasoline, diesel, jet fuel, and various petrochemical feedstocks, supporting the transportation, aviation, and industrial sectors. These refineries continue to be essential for domestic energy security, supplying a majority of the UK's refined petroleum demand. Additionally, the UK’s strategic ports and logistics networks enable some level of refined product exports to Ireland and other nearby regions. The refining landscape is also adjusting to emerging energy trends, including increased interest in biofuels and the potential integration of hydrogen, although these remain in early stages. The UK is also pushing for increased biofuel blending mandates, especially for ethanol and biodiesel, through its Renewable Transport Fuel Obligation (RTFO) policy.

According to the research report, ""United Kingdom Oil Refining Market Overview, 2030,"" published by Bonafide Research, the United Kingdom Oil Refining market is anticipated to add to more than USD 9.56 Billion by 2025–30. As of 2024, the United Kingdom has six major operational oil refineries with a combined capacity of around 1.15 million barrels per day, significantly reduced from its peak in the 1970s when the country had over a dozen refineries. The largest refinery is Fawley, operated by ExxonMobil, located near Southampton, with a capacity of approximately 270,000 barrels per day, followed by Stanlow (Essar Oil UK), Grangemouth (Petroineos), Lindsey (Prax Group), Pembroke (Valero), and Humber (Phillips 66). UK crude oil production primarily comes from the North Sea, but the country also imports crude from Norway, the U.S., Nigeria, and the Middle East, especially Saudi Arabia. Crude imports accounted for over 30 million tonnes in 2023, according to the UK Department for Energy Security and Net Zero. The UK refineries process a mix of light and medium sweet crudes and several have upgraded with fluid catalytic cracking (FCC) and hydrocracking units to produce low-sulphur diesel and gasoline aligned with BS VI/Euro 6 standards. The refining sector in the UK has faced reduced margins due to declining domestic demand, stricter emissions regulations, and increasing competition from larger-scale refiners in Asia and the Middle East. Fuel production is heavily skewed towards diesel and jet fuel, with significant exports to Ireland, the Netherlands, and continental Europe, while the UK also imports refined gasoline due to imbalanced domestic consumption patterns. The downstream supply chain is supported by major oil terminals, the UK Oil Pipeline (UKOP), and road/rail logistics, distributing products to approximately 8,000 filling stations nationwide.

Gasoline and diesel remain the primary fuels consumed within the UK, with gasoline largely fueling private passenger vehicles and diesel used extensively in commercial transportation, logistics, and agriculture. Despite increasing electric vehicle adoption, internal combustion engine vehicles still dominate the fleet mix, sustaining demand for these traditional fuels. Jet fuel consumption centers mainly on major international airports such as Heathrow and Gatwick, which are among the busiest in Europe, supporting both passenger and cargo flights. The aviation sector’s fuel use has rebounded post-pandemic, driven by renewed travel demand, although airlines are also investing in sustainable aviation fuels to reduce carbon emissions. Liquefied petroleum gas (LPG) usage in the UK is predominantly concentrated in rural heating applications and certain industrial processes, but its overall share in domestic energy use is shrinking due to the expansion of natural gas networks and electric heating. Fuel oil consumption has declined considerably, reflecting both stricter environmental regulations and a shift away from oil-based heating in homes and industries. Other products such as lubricants and asphalt maintain steady demand, supporting the UK’s manufacturing sector and ongoing infrastructure projects, including road construction and maintenance. Lubricant production focuses on automotive and industrial machinery applications. Asphalt demand correlates with government infrastructure investments and urban development. The UK refining industry has also adapted to meet higher fuel quality standards, aligning with Euro 6 and future regulations to reduce pollutants. Recent developments include growing integration of biofuel blending and low-sulfur fuel mandates, pushing refiners to upgrade production processes to reduce sulfur content and enhance fuel performance.

Road transportation stands as the dominant sector for refined fuel consumption in the UK, accounting for the majority of gasoline and diesel use. Passenger cars, commercial vehicles, and freight trucks contribute heavily to overall fuel demand, even as electric vehicle penetration increases. Aviation is the second-largest fuel-consuming sector, with Heathrow and Gatwick airports leading the recovery in jet fuel consumption after pandemic lows. The UK government supports sustainable aviation fuel development to decarbonize this segment over time. Marine bunkering activity occurs mainly in coastal terminals such as those in Southampton and the Humber, providing fuels for shipping routes in the North Sea and beyond. The UK’s petrochemical industry, centered around facilities like Grangemouth, relies heavily on refinery outputs as feedstock for producing plastics, chemicals, and synthetic materials, sustaining demand for naphtha and other intermediates. Residential and commercial fuel consumption patterns show a decline in traditional heating oil use, replaced largely by natural gas and electric heating options as part of energy efficiency and decarbonization efforts. Electricity generation in the UK relies predominantly on renewables and natural gas, limiting the role of refined petroleum products in power generation. Other niche applications include rail transport, domestic waterways, and agricultural machinery, where diesel remains critical. Despite the gradual energy transition, these end-use sectors sustain stable refined fuel demand, with increasing regulatory emphasis on cleaner fuels and emission reductions shaping consumption trends and encouraging ongoing refinery upgrades.

The UK’s refining sector primarily processes crude oil sourced from the North Sea, which accounts for a significant share of domestic supply, complemented by imports from the Middle East and West Africa. Post-2022 geopolitical shifts and sanctions on Russian oil have further reduced reliance on Russian crude, pushing UK refiners to diversify feedstock sources. Key refineries such as those at Stanlow and Fawley have adapted operations to accommodate varying crude grades, improving feed flexibility to maintain product output. Trials with bio-feedstock blending, particularly hydrotreated vegetable oils (HVO), have been undertaken at these refineries to meet sustainability goals and comply with EU and UK fuel standards. These trials aim to reduce carbon intensity and support the UK’s net-zero targets. The post-Brexit regulatory landscape has also impacted crude oil and feedstock imports, introducing customs and trade complexities that refiners navigate to ensure steady supply chains. Natural gas liquids (NGLs), often derived from associated gas in crude oil processing, support LPG and petrochemical feedstock demands domestically. While biomass feedstock use remains limited, emerging pilot projects seek to explore sustainable alternatives to conventional crude. Other feedstocks such as coal tar and petroleum coke are minor but occasionally used in specialty applications or energy generation within integrated refinery-petrochemical complexes. Recent investments focus on enhancing feedstock versatility, enabling refiners to switch between crude types and renewable inputs swiftly amid volatile global markets and evolving environmental regulations.

The UK refining sector features primarily medium to high complexity refineries equipped with fluid catalytic cracking (FCC) and hydrocracking units, enabling the conversion of heavier crude oils into higher-value transportation fuels and petrochemical feedstocks. Major facilities such as Stanlow and Fawley have invested in upgrading their processing units to enhance production of renewable diesel and hydrotreated vegetable oils (HVO), aligning with national and EU sustainability mandates. These upgrades include expanded desulfurization capacity to comply with strict sulfur content limits in fuels, improving environmental performance. Decarbonization of refinery operations is a key focus, with operators implementing energy efficiency retrofits, carbon capture trials, and electrification of process units to reduce greenhouse gas emissions. However, much of the refinery infrastructure dates back several decades, necessitating ongoing modernization to maintain competitiveness and regulatory compliance. While no significant greenfield refinery projects have been initiated recently due to market saturation and the global shift toward renewables, retrofit and digitalization investments are advancing to improve operational flexibility and cost efficiency. Advanced process control systems, data analytics, and hybrid operations integrating bio-based feedstocks have become common to optimize product yields and emissions profiles. The UK’s refinery complexity thus reflects a mature, evolving sector balancing legacy asset management with emerging low-carbon technologies amid increasing policy and market pressures to decarbonize fuel production.

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