Wholesale Fuel Distribution: How Buyers Source Diesel, Gasoline, Marine and Jet Fuel

What Is Wholesale Fuel Distribution?

Wholesale fuel distribution is the bulk supply of refined products from refineries and storage terminals to buyers who resell or consume fuel at scale, priced against published benchmarks and verified by independent inspection.

Refineries turn crude oil into finished products. Wholesale distributors then move those products in bulk by tanker, barge, pipeline or truck. Buyers include fuel station networks, trucking fleets, airlines, ship operators, power plants and importing distributors.

The market is large and export-driven. U.S. exports of total petroleum products reached a record 6.6 million b/d annual average in 2024, with distillate exports at about 1.30 million b/d.^[1] Exports of the three main transportation fuels, distillate, motor gasoline and jet fuel, averaged 2.4 million b/d in 2025, and distillate was more than half of that.^[6]

Two trading layers exist. Cargo trade moves thousands of metric tons (MT) per vessel between hubs such as Houston, Rotterdam, Singapore and Fujairah. Rack trade sells truckload volumes at an inland or coastal terminal. Most importers and large consumers buy at cargo level; for a wider view of the chain, see our guide to crude oil and refined fuel procurement.

• Middle distillates: ultra-low sulfur diesel (ULSD), marine gas oil (MGO) and jet fuel
• Light products: automotive gasoline in regular, mid-grade and premium blends
• Residual fuels: fuel oil 380 for scrubber-fitted ships and industrial boilers

XRT Group runs these products through its Energy Desk, with direct-origin sourcing and inspection services from Houston, Rotterdam and Singapore. Diesel is the largest product in this mix, so the next chapter starts there.

What Should Buyers Specify When Sourcing Ultra-Low Sulfur Diesel?

Specify the sulfur standard first: EN 590 diesel allows a maximum of 10 ppm sulfur, while U.S. ULSD is capped at 15 ppm.

Ultra-low sulfur diesel is the workhorse of road transport, farming and backup power. Demand is steady and deep. In 2025, U.S. transportation sector distillate consumption was about 2.94 million b/d, or about 123 million gallons per day. That was about 75% of total U.S. distillate consumption.^[2]

Sulfur limits define the grade. Beginning in 2006, the U.S. EPA phased in a 15 ppm sulfur limit for diesel. All highway diesel was ULSD by 2010, and nonroad, locomotive and marine diesel followed by 2014.^[3] Europe's EN 590 standard is tighter, at 10 ppm maximum, and also sets cetane and cold-flow limits.

• Sulfur: 10 ppm max (EN 590) or 15 ppm max (ASTM D975 Grade S15)
• Cetane number: 51 minimum under EN 590
• Cloud point and cold filter plugging point: matched to the season and destination climate
• Flash point, density and distillation range: confirmed on the load-port certificate

XRT supplies EN 590 ultra-low sulfur diesel from ARA refineries and the U.S. Gulf Coast. Terms are a 3,000 MT minimum, FOB or DAP, priced against Platts ULSD, with Intertek load-port analysis. Our EN 590 diesel specification guide covers the full test table.

Diesel buyers often also supply gasoline to the same station networks, which is the next product to understand.

How Do Station Networks and Terminals Buy Gasoline in Bulk?

Bulk gasoline buyers choose a blend by octane grade and seasonal volatility, then match cargo size and delivery mode to their terminal tankage.

Gasoline is the highest-volume road fuel in the United States. In 2025, Americans used about 136.72 billion gallons of gasoline, including 136.53 billion gallons of finished motor gasoline. That equals about 374.05 million gallons per day.^[4]

Retail networks sell three common grades. In the U.S., regular is usually 87 octane, mid-grade 89 and premium 91 or higher, measured as the pump octane index. Other markets use research octane (RON) numbers instead, so confirm which scale your contract uses.

Volatility matters as much as octane. Reid vapor pressure (RVP) limits change between summer and winter, and some markets require ethanol blending at the terminal. A cargo that fits one market's summer rules may fail another's winter rules, so the specification must name the destination and delivery month.

XRT offers regular, mid-grade and premium automotive gasoline for station networks and bulk terminals. Commercial terms are quoted on request through the Energy Desk. Marine buyers face a different rulebook, set by international shipping law, which the next chapter explains.

Which Marine Fuels Meet IMO 2020 Bunkering Rules?

Since 1 January 2020, ships outside emission control areas must burn fuel with no more than 0.50% sulfur, unless they run an approved exhaust scrubber.

The International Maritime Organization cut the sulfur limit for ship fuel outside emission control areas to 0.50% m/m, down from 3.5%, from 1 January 2020.^[5] This rule, known as IMO 2020, reshaped the bunker market. Ships now choose between compliant low-sulfur fuels and high-sulfur fuel burned with a scrubber.

Marine gas oil (MGO) is a distillate bunker fuel. It is graded under ISO 8217, the international marine fuel standard, usually as DMA. MGO is clean, easy to handle and suits auxiliary engines and ships trading in stricter emission zones.

• MGO (ISO 8217 DMA): distillate, low sulfur, simple handling
• VLSFO: very low sulfur fuel oil blended to meet the 0.50% cap
• HSFO / fuel oil 380 (ISO 8217 RMG 380): up to 3.5% sulfur, for scrubber-fitted vessels

XRT supplies ISO 8217 marine gas oil for bunkering at Houston and Fujairah, with terms on request. For blend stability and sampling risks, read our VLSFO bunker fuel quality guide. Heavy fuel oil and aviation fuel are traded at cargo scale, which the next chapter covers.

How Do Jet Fuel A-1 and Fuel Oil 380 Cargoes Differ?

Jet A-1 is a tightly controlled aviation kerosene, while fuel oil 380 is a heavy residual fuel; both trade in cargo lots of 5,000 MT or more.

Jet A-1 is kerosene-grade aviation turbine fuel. It meets ASTM D1655 and DEF STAN 91-091. Key limits include a 38°C minimum flash point and a -47°C maximum freeze point. Chain-of-custody records follow Joint Inspection Group (JIG) practice, because airlines cannot accept any gap in quality history.

XRT sources Jet A-1 aviation fuel from Singapore and Rotterdam. Terms are a 5,000 MT minimum on CIF basis, priced against Platts Jet/Kero, with SGS inspection and letter of credit settlement.

Fuel oil 380 is a residual fuel with a viscosity of 380 cSt at 50°C and up to 3.5% sulfur, graded ISO 8217 RMG 380. It fuels scrubber-fitted ships, industrial steam and power plants. XRT supplies high-sulfur fuel oil 380 from Houston and Fujairah, 5,000 MT minimum, FCA or FOB, against Platts HSFO, with Bureau Veritas inspection.

Both products depend on benchmark pricing, so it helps to know how those benchmarks work. That is the subject of the next chapter.

How Is Wholesale Fuel Priced: Rack vs Cargo Benchmarks?

Cargo fuel is priced as a differential to a published Platts assessment, while rack fuel is priced from a terminal's posted daily price for truckload lifts.

Rack pricing is the price a terminal posts for fuel loaded into trucks at its loading rack. It suits regional distributors and fleets that lift small volumes often. Rack prices move daily and already include terminal costs.

Cargo pricing applies to vessel and barge lots. The contract names a benchmark, such as a Platts assessment from S&P Global Commodity Insights, plus a fixed premium or discount. The final price is set by averaging the benchmark over an agreed pricing window, such as the days around the bill of lading date.

Pricing window choice can move your landed cost as much as the premium. Our commodity pricing benchmarks guide explains averaging methods and hedging basics. Once price terms are clear, the next step is running the purchase itself.

How Do You Procure Refined Fuels Step by Step?

A sound fuel purchase moves from written specification to screened counterparty, fixed price, independent inspection and documented delivery, with no step skipped.

Each step below protects the buyer against a known risk: wrong grade, bad counterparty, price exposure or short delivery. The inspection step is where most disputes are won or lost.

At load port, an independent inspector such as SGS, Bureau Veritas or Intertek draws samples and issues a certificate of quality and a certificate of quantity. The bill of lading, certificate of origin and a retained sample complete the file. Our guide on how to read and verify an SGS inspection report shows what to check line by line.

When you are ready to start, send a refined fuel request for quotation with grade, volume, destination and delivery window. The final chapter turns these steps into lasting habits.

1. 1

   Define the grade and volume

   Write the full specification, such as EN 590 or ISO 8217 DMA, plus volume, destination port and delivery window. Include seasonal limits such as cloud point or vapor pressure.

2. 2

   Submit an RFQ and compare offers

   Send the specification to direct-origin suppliers. Compare offers on benchmark, premium or discount, Incoterms, pricing window and inspection company, not on headline price alone.

3. 3

   Complete KYC and sanctions screening

   Exchange corporate documents and screen both sides against FATF-aligned AML rules and OFAC and EU sanctions lists before signing any contract.

4. 4

   Sign the contract and open payment

   Agree the sales contract, then open a letter of credit under UCP 600 or confirm open account terms. Match LC documents exactly to the contract wording.

5. 5

   Inspect at load port

   Appoint SGS, Bureau Veritas or Intertek to sample and test the cargo. Obtain certificates of quality and quantity before the vessel sails.

6. 6

   Take delivery and reconcile

   Check discharge quantity and quality against load-port certificates. Raise any claim within the contract's notice period, using retained samples as evidence.

What Are the Best Practices for Wholesale Fuel Distribution Buyers?

The best fuel buyers standardize specifications, insist on independent inspection and price against transparent benchmarks on every cargo.

• Write the destination into the spec: sulfur, octane and cold-flow limits differ by market and season.
• Name the inspector in the contract: agree SGS, Bureau Veritas or Intertek before loading, not after.
• Fix the pricing window early: a clear averaging period prevents disputes over the final invoice.
• Keep retained samples: hold them until the claim period ends.
• Screen every counterparty: repeat sanctions and AML checks when ownership or trade routes change.
• Compare term and spot supply: term contracts with monthly price fixing smooth cost for steady users.

Risk control extends beyond fuel. Our supply chain risk management guide covers supplier concentration, route disruption and document fraud across commodity classes.

XRT's Energy Desk replies to buyer inquiries in under 4 business hours. To discuss a spot cargo or a term program, contact the Energy Desk with your grade and destination.