Cracking residual fuel oil separated from a mixture of Azerbaijanian crude oils using catalysts based on aluminum plant sludges containing up to 50-70% Fe2O3 was investigated. It is shown that the yield of liquid products, including motor fuels, upon residual fuel oil cracking at 550 A degrees C rises to 80 and 70 wt. %, respectively. Steam gasification of carbonized and partially reduced catalyst allows production of gas with hydrogen content of up to 72.84 vol. %.