WHAT IS IT?
Diesel (also called gas oil) is a middle distillate fuel refined from crude oil, boiling between 150°C and 380°C. It is the world's most consumed petroleum product, used in trucks, ships, trains, agricultural machinery, and industrial generators.
TYPES BY SULPHUR CONTENT
10ppm (ULSD — Ultra Low Sulphur Diesel): Standard in Europe, Singapore, Australia. EN590 specification.
50ppm: Common in parts of Southeast Asia and Africa.
500ppm: Lower quality, used in older markets and marine applications.
2,500–5,000ppm (High Sulphur Gas Oil): Industrial and marine use, being phased out.
KEY GRADES
EN590: European standard — 10ppm sulphur, cetane min 51. Required for EU market.
ASTM D975: US standard.
Bunker/Marine Gas Oil (MGO): ISO 8217 DMA/DMB — used in ships post-IMO 2020.
KEY USES
Road transport (trucks, buses, cars — largest use)
Agricultural machinery (tractors, irrigation pumps)
Railway locomotives
Marine fuel (MGO for smaller vessels)
Industrial generators and power plants
Construction equipment
TRADE CORRIDORS
Major exporters: Russia, Middle East, India, China, USA
Major buyers: Europe, Africa, Southeast Asia, Latin America
Tetra relevance: East Africa corridor — Tanzania and Kenya import significant diesel volumes for transport and power generation. Indonesia is a major consumer.
PRICING BASIS
Benchmark: ICE Gasoil futures (London). Regional: Singapore MOPS (Mean of Platts Singapore) for Asia. ULSD NYMEX for US.
Priced as a crack spread above crude oil.
SPECIFICATIONS (EN590 10ppm)
Sulphur: max 10 mg/kg (10ppm)
Cetane number: min 51
Density at 15°C: 820–845 kg/m³
Flash point: min 55°C
CFPP (Cold Filter Plugging Point): varies by climate grade
Polycyclic aromatic hydrocarbons: max 8%
B7 BLENDING
EN590 allows up to 7% FAME biodiesel blend (B7). Higher blends (B10, B20, B30) being introduced in some markets.