A slippery slope: The declining world price of crude oil has caused industry revenue to drop

The Petroleum Product Wholesaling industry is currently dominated by four major companies, including Caltex Australia, Viva Energy, BP Australia and ExxonMobil, which together account for over 90% of industry revenue. These companies source petroleum products from their local fuel refining operations as well as through imports from their overseas operations. Many smaller independent wholesalers and importers compete for a share of the local market.The supply chain for petroleum products has undergone substantial structural change over the past five years, stemming from the closure of a large portion of the upstream petroleum refining capacity. The divestment of refining-related assets has been offset by the investment in petroleum import terminals and storage facilities...read more.

Industry Statistics & Market Size
Revenue
$45bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
12,700
Businesses
820

Industry Threats & Opportunities

  • The petroleum product supply chain has undergone substantial change over the past five years
  • Industry revenue has declined despite higher sales volumes and inelastic demand
  • The growing emphasis on the fuel efficiency of new cars will constrain demand for fuel
  • Industry Report - Industry Investment Chapter

    The industry is characterised by a medium degree of capital intensity. The bulk of the industry's activities involve managing relationships through the supply chain and distributing the petroleum product to the customers (typically retail outlets). The industry has substantial fixed assets such as storage tanks, rail trucks and road tankers and in recent years, the industry has invested heavily in new import terminals and storage facilities to compensate for the closure of refining capacity. Capital intensity is estimated to be higher for the major players than for smaller firms. The larger firms tend to focus on high-volume distribution, which relies more heavily on large-scale capital equipment such as rail cars and major storage facilities. Sma...purchase to read more.

    Additional Insights for the Petroleum Product Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Product Wholesaling Industry are

  • Economies of scale
  • Upstream vertical integration (ownership links)
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Demand from fuel retailing in the Petroleum Product Wholesaling industry impact industry performance..

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    What's in this report

    What is the Petroleum Product Wholesaling Industry?

    Industry firms wholesale petroleum or petroleum products. They may also retail liquefied petroleum gas (in bulk or containers), heating oil or other fuel oils. Major oil refiners have petroleum-wholesaling operations, but other firms also operate in the industry. Industry firms supply locally refined and imported products.

    Industry Products
  • Automotive petroleum
  • Automotive diesel oil
  • Aviation turbine fuel
  • Liquefied petroleum gas
  • Other petroleum products
  • Industry Activities
  • Bitumen wholesaling
  • Crude oil wholesaling
  • Crude petroleum and petroleum product wholesaling
  • Diesel oil wholesaling
  • Distillate wholesaling
  • Fuel oil wholesaling
  • Heating oil dealing
  • Kerosene wholesaling
  • Liquefied petroleum gas (LPG) wholesaling
  • Oil or grease, industrial or lubricating, wholesaling
  • 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
  • Demand from fuel retailing
  • Number of motor vehicles
  • Demand from petroleum refining and petroleum fuel manufacturing
  • Real household disposable income

  • Current Performance
  • Profitability
  • Structural shake-up
  • Local demand changing
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit strengthens
  • Competition
  • Demand drivers
  • Changing fuels
  • Table: Petroleum Product Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Product Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Petroleum Refining and Petroleum Fuel Manufacturing
  • Construction
  • Fuel Retailing
  • Road Freight Transport

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

  • Products & Services
  • Automotive diesel oil
  • Automotive petroleum
  • Aviation turbine fuel
  • Liquefied petroleum gas
  • Other petroleum products
  • Chart: Petroleum Product Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Mining, agriculture and transport sectors
  • Independent fuel retailers
  • Refiner branded retailers
  • Resellers and distributors
  • Chart: Major Market Segmentation for the Petroleum Product Wholesaling 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 Petroleum Product Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Product Wholesaling Industry

  • Industry Globalization
    Caltex Australia Limited, Viva Energy Holding Pty Ltd, BP Australia Investments Pty Ltd, ExxonMobil Australia Pty Ltd,
  • Table: Caltex Australia Limited - financial performance
  • Table: Viva Energy Holding Pty Ltd - financial performance
  • Table: BP Australia Investments Pty Ltd - financial performance
  • Table: ExxonMobil Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Product Wholesaling 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 Petroleum Product Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World crude oil price (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Diesel
  • A heavier fuel than petrol that can be used in cars and heavy vehicles. Diesel is also known as automotive distillate.
  • Ethanol
  • A fuel substitute or additive derived from plant sources.
  • Liquefied Petroleum Gas (Lpg)
  • This fuel has a lower energy content than petrol or diesel, but can be used as automotive fuel in vehicles with suitably modified engines.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Petroleum Product Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Petroleum Product Wholesaling:
    • 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 Petroleum Product Wholesaling 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 Petroleum Product Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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