Oil refining has once again stood out as the most dynamic sector of the Argentine industry under the administration of Javier Milei. In May 2026, the plants utilized 88.7% of their installed capacity, a level close to 90% and significantly higher than the overall industry average.
This figure represents an improvement of 15.4 percentage points compared to May 2025, when utilization was at 73.3%. Additionally, refining greatly surpassed the other productive blocks surveyed by INDEC: basic metal industries reached 75.4%, paper and cardboard hit 68.1%, chemical substances and products at 65.6%, and food and beverages at 60%.
Oil refining sets activity records
During the first five months of 2026, refinery utilization remained at 86% or more: it recorded 86.8% in January, 88.9% in February, 86% in March, 86.8% in April, and 88.7% in May.
Thus, the sector achieved an average of 87.4% during the first five months of the year, demonstrating that the plants have been operating steadily at high levels under the government of Javier Milei.
According to the statistical agency, the main positive impact in May was related to increased processing of crude oil. This expansion was directly reflected in fuels: the production of diesel increased by 23.8% year-on-year and gasoline production rose by 18.3%.
Javier Milei with YPF workers.
Taking as a reference the complete years from 2020 to 2023, a period that encompasses almost the entire presidency of Alberto Fernández, the average use of installed capacity in refining was close to 75.8%. The difference shows the acceleration achieved by one of the strategic sectors of the economy during the current administration.
Milei seeks to expand Argentina's oil frontier
The growth of refining coincides with new measures aimed at extending oil activity. The government ordered the calling of an international tender to explore the area CAN_200, located off the coast of Buenos Aires, near San Clemente del Tuyú.
Maritime exploration would be a possibility in Javier Milei's management.
The block comprises approximately 5,000 square kilometers of the Northern Argentine Basin. The call will be the first offshore exploration round of this nature since 2018 and aims to attract private investments, technology, and specialized equipment to study the hydrocarbon potential of the continental shelf.
The opening of the tender came after an expression of interest was submitted by Challenger Energy Group, although the company will have to compete with other groups that demonstrate technical and financial capacity. If studies detect resources and commercial exploitation is realized, the project could expand the national availability of crude oil and strengthen the entire energy chain.
Javier Milei
With refineries operating near their limit and the oil frontier once again open to investment, energy is consolidating as one of the main productive engines of Argentina.
