Argus Unveils New Gasoline Price Benchmark for Middle East Market

Argus Unveils New Gasoline Price Benchmark for the Middle East

In a significant move for the regional energy sector, Argus Media has launched a new daily gasoline price assessment called MEBOB. This assessment is designed to reflect the actual market conditions for gasoline production and sales in the Middle East, marking an important shift in how gasoline pricing is determined in this vital area of global energy.

Historically, gasoline pricing in the Middle East has been largely dependent on the Singapore market value, adjusted for transportation costs. However, this method has increasingly become misaligned with local supply and demand dynamics. In the context of rising local production capacity and increasing gasoline exports, the need for an independent pricing benchmark has become more pressing. As of the previous year, refining capacity in the Gulf region exceeded 10.5 million barrels per day (b/d), and gasoline production itself surged from approximately 1.7 million b/d to nearly 2.4 million b/d over the last seven years.

Given these developments, the MEBOB assessment aims to enhance market transparency and help stakeholders engage in better risk management by providing a local price that is directly influenced by trading activities during the UAE trading day. The assessment does not derive its price from the Singapore market, making it a unique offering that caters specifically to Middle Eastern market realities.

Adrian Binks, chairman and CEO of Argus Media, stated, “The Middle East needs its own independently assessed gasoline price representing local market fundamentals and not those of a faraway and increasingly disconnected region. The MEBOB price offers important transparency, will enable better risk management and planning, and completes a global market picture.”

The MEBOB price assessment is developed in collaboration with local companies involved in the gasoline production, consumption, and trading sectors. It specifically reflects the price of the oxygenated 92 Ron gasoline grade, which is commonly found in the region and loaded in major hubs, including Fujairah, Jebel Ali, or Sohar. Market information on other gasoline qualities and loading ports can also be incorporated into this price assessment, creating a comprehensive price point relevant to various stakeholders.

Notably, the MEBOB price will complement the existing Argus Eurobob gasoline price, which serves as the standard benchmark for Europe. With derivatives based on Argus Eurobob already being used to manage price risks across Europe and the global gasoline market, the new MEBOB price adds an important layer to the risk management toolkit available for firms operating in the regional market.

As regional gasoline markets continue to evolve, the MEBOB assessment from Argus Media represents a critical step towards having a localized, independent measure of gasoline prices that can keep pace with growing demand and production capabilities in the Middle East. Argus Media’s role as a provider of market intelligence remains vital, especially in a region where market conditions can be vastly different from those of other global markets.

With headquarters in London, Argus establishes itself as a leading independent provider of market intelligence for the global energy and commodity sectors. Its operations span several critical commodity trading hubs, ensuring comprehensive market insights and accurate price assessments are available to its clients across the globe. Founded in 1970, the company continues to maintain its status as a trusted source for price benchmarks used in energy and commodity trading.