The opening of new diesel refinery units in Europe and the Middle East is set to boost supplies of the fuel this year.

However, even as newer refineries such as Neste's in Porvoo, Finland, become operational, demand will continue to outstrip supply, it has been reported.

The increased demand for diesel is borne out by a European Automobile Manufacturers' findings that, excluding new EU member countries, over 50 per cent of new cars that were registered in the EU last year were diesel-powered.

Although it is anticipated that this rate of growth will not continue, analysts still predict that demand for diesel-run cars and light trucks by 2013 will reach almost 60 per cent of the overall market.

Commenting on the projections, Al Bedwell of JD Power Automotive Forecasting, said: "The strong growth period is passed, but the diesel market's going to stay strong."

Ten years ago diesel-powered cars accounted for about a quarter of new cars registered in the EU, while in 1990 the figure stood at about a tenth.


Ÿ Adfero Ltd