Gassed up: Rebounding fuel prices and more diversified operations should support growth

Fuel retailers' revenue has been volatile over the past five years, largely due to significant fluctuations in the world price of crude oil. Plunging oil prices over the two years through 2015-16 contributed to lower pump prices for consumers. As demand for fuel is largely inelastic, this negatively affected industry revenue early in the period. However, global crude oil prices began to rebound in 2016-17, boosting domestic fuel prices and helping to return the industry to growth in 2017-18. Despite the recent uptick, overall industry revenue is expected to contract at an annualised 1.0% over the five years through 2018-19, to $38.5 billion. This includes an expected 1.5% rise in the current year as global fuel prices continue to bounce more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Diesel sales have grown more rapidly over the period, as more motorists have switched to diesel vehicles
  • A high volume of fuel needs to be sold to cover operating costs and generate profit
  • Demographic and lifestyle changes may curb demand growth for car ownership, subduing fuel demand
  • Industry Report - Industry Locations Chapter

    The geographic spread of the industry is based on fuel consumption in each state. Fuel retail volumes are closely correlated with population, income distribution and overall economic conditions. As a result, fuel consumption is heavily concentrated across the eastern seaboard states, which account for most of the Australian population and business activity. New South Wales, Victoria and Queensland account for 76.2% of fuel retail volume, and over 77% of the population. There is high demand for transport in and between these states.Western Australia accounts for 12.5% of retail petrol sales. The state's share of sales is higher than its population share of 10.8%, primarily because of the large distances covered in road travel across Western Australia. Con...purchase to read more.

    Additional Insights for the Fuel Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Fuel Retailing are:

  • Proximity to key markets
  • Financial support from a downstream activity
  • Close monitoring of competition
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Domestic tourist visitor nights in the Fuel Retailing industry impact industry performance..

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    What's in this report

    What is the Fuel Retailing Industry?

    Industry firms mainly retail automotive fuel or lubricating oils, typically at a service station. Participants also retail convenience store goods and provide services such as car washing as a supplement to fuel sales.

    Industry Products
  • Petrol
  • Diesel, LPG and other gas fuels
  • Oils, lubricants and additives
  • Non-fuel products and other services
  • Industry Activities
  • Diesel oil retailing
  • Automotive CNG retailing
  • Distillate retailing
  • Engine oil retailing
  • Kerosene retailing
  • Automotive LPG retailing
  • Lubricating oil or grease retailing
  • Petrol retailing
  • Service station operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Domestic tourist visitor nights
  • US dollars per Australian dollar
  • Number of motor vehicles

  • Current Performance
  • Demand trends
  • Profit
  • Regulatory trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Profit
  • Structure
  • Table: Fuel Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fuel Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Road Freight Transport
  • Taxi and Limousine Transport
  • Road Freight Forwarding
  • Consumers

  • Key Selling Industries
  • Oil and Gas Extraction
  • Petroleum Product Wholesaling
  • Petroleum Refining and Petroleum Fuel Manufacturing

  • Products & Services
  • Petrol
  • Diesel, LPG and other gas fuels
  • Non-fuel products and other services
  • Oils, lubricants and additives
  • Chart: Fuel Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Fuel Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Fuel Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fuel Retailing Industry

  • Industry Globalization
    Caltex Australia Limited, Coles Group Limited, Woolworths Group Limited, 7-Eleven Stores Pty Ltd, BP Australia Investments Pty Ltd,
  • Table: Caltex Australia Limited - financial performance
  • Table: Coles Group Limited - financial performance
  • Table: Woolworths Group Limited - financial performance
  • Table: 7-Eleven Stores Pty Ltd - financial performance
  • Table: BP Australia Investments Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fuel Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fuel Retailing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A heavier fuel than petrol, which can be used in cars as well as heavy vehicles.
  • Lpg
  • Liquefied petroleum gas has a lower energy density than petrol or diesel. However, it can be used as an automotive fuel in vehicles with suitably modified engines.
  • Petrol
  • A relatively light transport fuel, refined from crude oil, which is commonly used to power cars.
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    Why buy this report?

    IBISWorld’s Fuel Retailing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Fuel Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fuel Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fuel Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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