Part 2: Characterization of Market Size and Segmentation

PADD 5 generally accounts for 15-20% of the U.S.’s total gasoline market. In 2019, PADD 5 states consumed a total of 1.6 MMbpd of gasoline, accounting for 17% of the U.S.’s total gasoline demand. Unlike the country as a whole, PADD 5 consumes most of its gasoline in the form of reformulated gasoline (RFG), with nearly 70% market share (against only 33% in the entire U.S.). This is owing to California’s gasoline market, which is entirely supplied with own versions of reformulated gasoline.

With respect to octane grade, the region’s market shares for regular, midgrade and premium grades come to approximately 80%, 2% and 18%, respectively. This market structure is similar to the national average, but with a marginally lower reliance on r