As 2019 comes to an end, the marine fuel and oil industries have been preparing for the new IMO 2020 sulphur regulations. The new rules setting a maximum level of 0.5% of sulphur in marine fuel will have a disruptive impact on the current market, and there will be a strain on the global diesel pool. All diesel related products, including marine gas oil, will see price increases, and there will be less availability.
However, we have worked closely with our suppliers all year to ensure that, throughout 2020 and beyond, our service remains strong and our prices competitive. We have secured our supply and our product quality will not be compromised. Our logistics and supply chain are securely in place, so there should be no impact on availability as a result of the new regulations. Some of the questions we are most frequently asked on this matter are as follows:
(1) Will it affect those who have only ever used marine gas oil?
In short, yes. As mentioned above, all diesel related products including MGO will be affected by the new regulations.
(2) Will it affect pricing?
Yes it will, although if you have purchase contracts in place they will be honoured to expiry. All spot prices are likely to see a small increase on 2019 levels.
(3) Will marine gas oil always be available?
It remains to be seen how supply levels will develop on a global basis. However, in the ports where we have physical stock of fuel, we will ensure the same security of supply and product quality as we always have.
If you wish to further discuss your fuel supply from 1 January 2020 and beyond, please contact Adam Russell on +44 (0) 1491 845474.