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In a general perspective: The initial stage of production for both products will be at the same refinery, from the same raw material. Obviously the lubricating oil has a different composition than petrol/ gas/ combustible fuel, so the difference is at which point in the refinement process the hydrocarbons (molecules composed of carbon and hydrogen) are extracted from the raw material.

After the raw material is heated to a gaseous state, the hot gas will cool as it rises through the distillation column. Since different hydrocarbons have different boiling points, they will condensate at different points in the column and be collected. This is how the compounds used in lubricating oils, fuels, plastics, etc. are separated from the raw material. This process is known as fractional distillation.

These distilled products may undergo further distillation and refinement, and different chemicals may be added prior to shipment to the consumer/industrial markets.

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Q: What is difference between fuel refinery and lube refinery?
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