Financial services firm UBS has increased refining margin forecasts for fuel retailers Ampol (ASX:ALD) and Viva Energy (ASX:VEA).

The company is predicting a significant jump in refining margin, between 12%-22%, as it foresees the market tightness in 2023 continuing into 2024.

They have also upgraded their EPS expectations for both Ampol and Viva in the range of 3%-19% for fiscal 2024 and 2025.

In addition to this, UBS raised its price target for Ampol from A$32.60 to A$33.20 and the price target for Viva Energy from A$3.35 to A$3.40.

Shares of ALD and VEA are currently up 0.5% and 1.8% respectively.

Ampol (ASX:ALD) is an Australian fuel company involved in refining, distributing and marketing petroleum products.