Running on empty: Petrol sales have fallen due to increased use of diesel-fuelled vehicles

Revenue for the Fuel Retailing industry 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. This factor negatively affected industry revenue early in the period, as demand for fuel is largely inelastic. However, global crude oil prices began to rebound in 2016-17, boosting domestic fuel prices and helping to return industry revenue to growth in 2017-18. Despite this recent uptick, overall industry revenue is expected to contract at an annualised 0.7% over the five years through 2018-19, to $39.0 billion. This includes an expected 1.5% rise in the current year as global fuel prices continue to bounce back...read more.

Industry Statistics & Market Size
Revenue
$38bn
Annual Growth 14-19
-1.5%
Forecast Growth 19-24
Profit
Employment
43,290
Businesses
4,021

Industry Threats & Opportunities

  • Diesel sales have grown more rapidly over the period, as more motorists have switched to diesel vehicles
  • Operators need to sell a high volume of fuel to cover operating costs and generate profit
  • Demographic and lifestyle changes will likely curb demand growth for car ownership, subduing fuel demand
  • Industry Report - Industry Investment Chapter

    The Fuel Retailing industry displays moderate capital intensity. For every dollar spent on capital costs in 2018-19, $3.50 is spent on wages. Many industry staff are hired on a part-time basis, keeping wage costs low. Retailers require employees to process customer transactions, place orders, manage inventory, stock shelves and display merchandise.Depreciation costs are typically derived from assets that are required to conduct business, such as cash registers, computer systems, and store fixtures and fittings. In addition, a substantial amount of funding is invested in storage tanks, gas bottles and pumps. Capital costs increase as retailers replace old equipment or expand their operations...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
  • Electric vehicles
  • 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
  • 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
    Coles Group Limited, Caltex Australia Limited, Woolworths Group Limited, 7-Eleven Stores Pty Ltd, BP Australia Investments Pty Ltd,
  • Table: Coles Group Limited - financial performance
  • Table: Caltex Australia 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Diesel
  • 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.
  • What Our Customers Say

    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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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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