By:Argumedia

Saudi Arabia's gasoline exports in 2024 were the highest in more than six years, as refinery upgrades and domestic demand below pre-Covid levels left more supplies available.

Latest figures from the Joint Organisations Data Initiative (Jodi) put show Saudi gasoline exports at an average of 280,500 b/d in 2024, the highest since 413,000 b/d in 2018. The rise comes as Saudi gasoline demand still lags pre-pandemic 2019 levels, mainly because of higher retail prices. Demand averaged 514,000 b/d in 2024, well below 2019's 550,000 b/d and only 1pc above the 509,000 b/d in 2023.

Higher retail prices have long been a concern in Riyadh, which increased the price of local refined products in 2016 and 2018 as part of a wider effort to gradually eliminate subsidies in the energy sector. In 2021, the country put a cap on prices to soften the effects of rising living costs and in hope of stimulating domestic fuel demand and economic activity.

Retail gasoline prices in February to date are at the same level as June 2021, at 2.18 riyals/l ($0.58/l) for 91R and SR2.33/l for 95R gasoline, they are higher than 2019 average of $0.55/l.

The demand weakness was compounded by digitalisation of several government services in Saudi Arabia since the pandemic, according to FGE analyst Palash Jain.

"There are reports that indicate that transactions are increasingly shifting online and citizens are no longer required to be physically present to avail certain government services," Jain said.

Saudi gasoline demand could slow further as the country expands production of electric vehicles (EVs), part of a strategy to diversify its economy away from oil. Saudi Arabia has a target of achieving 30pc EV adoption by 2030 and the country's PIF sovereign wealth fund has a 60pc stake in EV manufacturer Lucid Motors, which aims to build 150,000 vehicles a year at it factory in the country.

Local refineries ramp up

Gasoline output from Saudi refineries soared to a record 650,500 b/d in 2024, compared with 614,500 b/d in 2023 and 630,500 b/d in 2022, driven by higher output from the 400,000 b/d Jizan refinery on the Red Sea coast.

Saudi refinery crude runs rose by 3pc on the year to a two-year high of around 2.59mn b/d in 2024, according to Jodi.

Singapore emerged as a notable destination for Saudi gasoline cargoes, taking 23,000 b/d in 2024 after just 2,500 b/d in 2023, according to preliminary data from oil analytics firm Vortexa. Gasoline cargoes that loaded from Jizan were increasingly heading to Singapore in the fourth quarter of 2024.

State-controlled Aramco has been replacing Arab Medium crude with a mixture of Arab Light and Arab Heavy as feedstock for Jizah, which could in theory increase gasoline yield.

The UAE and Oman were among the top buyers of Saudi gasoline in 2024, with around 20pc and 13pc of the overall.