Brazil Vacuum Gas Oil Market Report and Forecast 2024-2032

Brazil Vacuum Gas Oil Market Size

The Brazil vacuum gas oil market is projected to grow at a CAGR of 6.7% between 2024 and 2032, due to the increasing demand for low-sulphur vacuum gas oil.

Brazil Vacuum Gas Oil Market Outlook

• In 2019, an average Brazilian took 0.5 airplane journeys to different domestic and international destinations.

• Over 75% of costs involved in asphalt production are associated with feedstock.

• Brazil’s aviation industry is responsible for meeting nearly 18% of the transportation requirements of Brazilians.

Brazil Vacuum Gas Oil Market Growth

In 2021, the average jet fuel consumption in Latin America was 8.21 thousand barrels per day, with nations such as Mexico (60.41 tbpd), Colombia (21.42 tbpd), and Chile (17.38 tbpd). Brazil, which is the second largest aviation market in Latin America, carried 68.89 million passengers between January and September 2022. This led to an improvement of 78.19% in traffic levels post the COVID-19 pandemic.

Major market players like LATAM Airlines (with a market share of 20%), TAP Air Portugal (10.57%), GOL (5.33%), and Azul (5.06%) are expected to play a crucial role in aircraft operation at major domestic and international airports. Between 2008 and 2019, the Brazilian aviation market grew at a rate of 7% annually. The anticipated market growth is expected to raise the demand for jet fuel over the forecast period, thereby accelerating the demand for vacuum gas oil.

Vacuum gas oil is extensively used in asphalt production in Brazil. Asphalt plays a critical role in enhancing the durability of roads and manufacturing roofing systems for houses. Fuel costs represent nearly 12% of the overall cost of asphalt production in Brazil. Other main costs such as equipment maintenance, infrastructure, plant transport, and electricity, among others, represent less than 10% of the costs. This is expected to drive the market growth in the forecast period.

Brazil Vacuum Gas Oil Industry Segmentation

Brazil Vacuum Gas Oil Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Light Vacuum Gas Oil (LVGO)

• Heavy Vacuum Gas Oil (HVGO)

Market Breakup by Type

• Low Sulphur Vacuum Gas Oil

• High Sulphur Vacuum Gas Oil

Market Breakup by Application

• Gasoline Production

• Diesel Oil Production

Market Breakup by Region

• São Paulo

• Minas Gerais

• Rio de Janeiro

• Bahia

• Rio Grande do Sul 

Brazil Vacuum Gas Oil Market Share

Based on region, the market is segmented into São Paulo, Minas Gerais, Rio de Janeiro, Bahia, and Rio Grande do Sul. Rio Grande do Sul is projected to dominate the market, representing 7% of the overall market share. Over the forecast period, Minas Gerais is expected to grow at a CAGR of 8.5%, due to the growing production of oil and diesel.

Leading Companies in the Brazil Vacuum Gas Oil Market

With the anticipated growth of crude oil extraction and production, the applications for vacuum gas oil are expected to surge significantly across a wide range of sectors, including industrial furnaces and marine diesel production, among others.

• BP Plc

• Petróleo Brasileiro S.A

• Others

Key Highlights of the Report