Bumpy road: Volatile fuel prices and fuel-saving alternatives drive revenue fluctuations

Fuel retailers have struggled with volatile revenue over the past five years. The world price of crude oil has fluctuated substantially over the period, declining significantly in 2015 and 2016. The plunge in oil prices has contributed to lower pump prices for consumers. As demand for fuel is largely inelastic, this adversely affected industry revenue between 2014-15 and 2016-17. Revenue is expected to contract by an annualised 2.7% over the five years through 2017-18, to $34.8 billion. However, the world price of crude oil is expected to continue its recovery in 2017-18, increasing industry revenue by 1.5%. The industry's main fuel-related products are petroleum and diesel...read more.

Industry Statistics & Market Size
Revenue
$35bn
Annual Growth 13-18
-2.7%
Forecast Growth 18-23
Profit
Employment
45,215
Businesses
4,110

Industry Threats & Opportunities

  • Falling oil prices have contributed to lower pump prices, adversely affecting revenue
  • A high volume of fuel needs to be sold to cover operating costs and generate profit
  • Demographic changes may curb growth in car ownership, kilometres driven and fuel demand
  • Industry Report - Industry Analysis Chapter

    The Fuel Retailing industry has performed poorly over the past five years. Industry revenue is expected to contract by an annualised 2.7% over the five years through 2017-18, to $34.8 billion. The world price of crude oil has been declining for most of the period. This has prompted moderate industry revenue volatility, as international prices largely influence retail petrol prices. The strong Australian dollar at the start of the period partly protected Australian consumers from high international oil prices. However, according to the Australian Institute of Petroleum, the average petrol price across Australia reached a record high in 2013-14, at 152.5 cents per litre. Oil...purchase to read more.

    Additional Insights for the Fuel Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fuel Retailing Industry are

  • Proximity to key markets
  • Having a loyal customer base
  • Financial support from a downstream activity
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and US dollars per Australian dollar 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 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
  • 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
  • US dollars per Australian dollar
  • Number of motor vehicles
  • Domestic tourist visitor nights

  • Current Performance
  • Demand trends
  • Profit
  • Service station ownership
  • Fuel discount offers
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Industry 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
  • Non-fuel products and other services
  • Diesel
  • LPG and other gas fuels
  • 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
    Wesfarmers Limited, Caltex Australia Limited, Woolworths Group Limited, BP Australia Investments Pty Ltd, 7-Eleven Stores Pty Ltd,
  • Table: Wesfarmers Limited - financial performance
  • Table: Caltex Australia Limited - financial performance
  • Table: Woolworths Group Limited - financial performance
  • Table: BP Australia Investments Pty Ltd - financial performance
  • Table: 7-Eleven Stores 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Fuel Consumption (2009-2023)

  • 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.
  • Ethanol
  • A fuel substitute or additive derived from plant sources.
  • Lpg
  • Liquefied petroleum gas has a lower energy content 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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