UAE’s Fujairah Marine Fuel Sales Decline by 7.1% in 2023

by Admin
Fujairah bunker fuel sales

Fujairah, the United Arab Emirates pivotal bunker hub, faced a 7.1% dip in marine fuel sales for the year 2023. Amid heightened geopolitical tensions in the Middle East, the port grappled with increased war insurance premiums, influencing the decline. Simultaneously, competitive pricing drew some bunker demand to the neighboring KhorFakkan port.

Despite these challenges, Fujairah retained its prestigious position as the world’s third-largest bunker hub, a testament to its enduring significance in the maritime landscape. The decline in sales is multifaceted, reflecting not only regional uncertainties but also the nuanced dynamics of the global bunker market.

Sales Snapshot

  • Fujairah marine fuel sales (excluding lubricants) amounted to 7,476,283 cubic meters (approximately 7.4 million metric tons) in 2023, as reported by S&P Global Commodity Insights.
  • Low-sulphur marine fuel sales, including LSFO and MGO, witnessed a 12.4% reduction to around 5.6 million tons in 2023, as per Reuters calculations.
  • High-sulphur fuel oil (HSFO) sales, in contrast, saw a robust 14.3% surge, reaching 1.8 million tons in 2023. The market share of high-sulphur bunkers in Fujairah rose to 24%, up from 20% in 2022.

This shift in market dynamics aligns with a global trend where vessels, fitted with scrubbers, increasingly opted for HSFO as a cost-effective alternative to LSFO.

Global Bunker Landscape

Monthly Marine Fuel Sales for Fujairah 2023

MonthTotal Sales (cubic meters)

Data source: Fujairah Oil Industry Zone data published by S&P Global Commodity Insights (1 cubic meter = 6.29 barrels; 1 metric ton = 6.35 barrels for fuel oil)

Source Fujairah Oil Industry Zone, S&P Global and Reuters (Jeslyn Lerh and Barbara Lewis)