Stringent fuel regulations for taxed and untaxed diesel to benefit the petroleum - fuel dyes and markers market
There is a lucrative opportunity with respect to the checking of taxed and untaxed diesel fuel worldwide. A few countries use fuel dyes for shading untaxed diesel fuel and vehicles are occasionally inspected for evaluating untaxed fuel usage. There are often situations where more than one colour is used in a specific nation. For e.g. – One fuel shade is enough to ascertain untaxed fuel but other colours are required to distinguish between different diesel classes, burdening the client with a surge in diesel prices.
Diesel is critical in many industries such as agriculture, railways, boats, aviation, and heating oil necessitating diverse colours for the sake of differentiation. This is linked to a restricted framework wherein certain vehicle classifications such as government vehicles are totally exempt from duties and taxes and they are allowed to purchase excluded un-coloured diesel fuel on the probability that they carry the documentation needed.
Even though this is very difficult to regulate, these frameworks exist leading to immense potential for the petroleum - fuel dyes and markers market.
Companies focussing on red dyes in the petroleum - fuel dyes and markers market
Red dyes and markers have a market share of almost 50% in the petroleum - fuel dyes and markers market in 2017 and this is poised to rise to 51% by the end of 2027. Red dyes are used in diesel for agricultural and construction vehicles including cranes, tractors, excavators, and other vehicles such as boats. Red dyed diesel has a significantly reduced tax compared to un-dyed diesel fuel used in conventional road vehicles.
The red dye segment is expected to gain a massive 350 BPS points by the end of the forecast period, largely at the expense of other colour dyes in the petroleum - fuel dyes and markers market. The red dye segment is predicted to push past a value of more than US$ 810 million by end 2027, making it larger than all other colour dyes combined in the petroleum - fuel dyes and markers market.
While the consumption of red dyes is typically connected to that of gasoline and diesel, kerosene consumption may also benefit red dyes in the petroleum - fuel dyes and markers market.
Yellow dyes a distant second in the petroleum - fuel dyes and markers market
Yellow dye fuels are used in the aviation industry for engine run-up ground testing and for phased or periodic inspections. Yellow fuel plays a vital role in inspecting leakages near the engine hot sections and in the places where high temperature inhibits leaking fuels. In addition, yellow dyes are preferred for anti-theft in refineries as it has a prolonged effect compared to its counterparts in the petroleum - fuel dyes and markers market.
Gasoline and aviation fuels are projected to drive the petroleum - fuel dyes and markers market according to the regulations laid down in Europe. Yellow dyes have a market attractiveness index of 0.9 as opposed to red fuel’s 5.0. An incremental dollar opportunity of almost US$ 50 million dollars is waiting to be tapped in the yellow dye segment of the petroleum - fuel dyes and markers market from 2017 to 2027.
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Petroleum - Fuel Dyes and Markers Market: Taxonomy
- Water Soluble
- Solvent Soluble
- Aviation Fuel
- Fuel Oils
- Lubricants & Greases
- Other Distillates
- Azo Dyes
- Anthraquinone Dyes
- Ethyl Dyes
- Fluorescent Dyes
- Western Europe
- Eastern Europe
- Latin America
- Middle East and Africa