Marine Gas Oil

Quick Answer

Last updated: 24 July 2026

Source: https://market-insights.upply.com/en/low-sulfur-regulations-the-impact-on-maritime-shipping-prices

Category

Logistics Concept

Reading time

1 min

Words

176

Mentioned in

–

Definition & Explanation

Marine Gas Oil (MGO) is a distillate marine fuel similar in quality and composition to diesel fuel, with a very low sulphur content – typically no more than 0.1 percent. This means MGO meets the strict limits applying in Emission Control Areas (ECA) such as the North Sea and Baltic Sea, where many vessels bunker it instead of heavy fuel oil or VLSFO. Because MGO requires more elaborate refining, its bunker price is well above that of conventional residual fuels, and every oil price spike hits it particularly hard. For shipping lines, MGO is therefore a key cost factor which they pass on to shippers through surcharges such as the Low Sulphur Surcharge or the Bunker Adjustment Factor. Forwarders should keep an eye on MGO quotations at major bunkering ports, as they help drive the development of ocean freight rates and charter rates. Not to be confused with VLSFO (Very Low Sulphur Fuel Oil, max. 0.5 percent sulphur) or with heavy fuel oil (HFO), which may now only be used with exhaust gas cleaning systems (scrubbers).