Performance is stalling: Industry revenue has declined due to lower crude oil prices

Volatility in the world price of crude oil has affected the Fuel Retailing industry over the past five years. An oversupply of crude oil in the global market caused the world price of crude oil to decline substantially between 2012-13 and 2015-16, with the most significant drop occurring in 2014-15. The drop in oil prices contributed to lower domestic petrol prices for consumers. Regular petrol prices fell from a peak of 233.3 cents per litre in 2013, to 186.4 cents per litre in 2016. Due to the inelastic nature of demand for fuel, this translated into lower revenue for industry firms. Industry revenue is expected to decline by an annualised 1.3% over the five years through 2017-18, to $8.2 billion...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
-1.3%
Forecast Growth 18-23
Profit
Employment
6,181
Businesses
669

Industry Threats & Opportunities

  • Service station ownership has undergone substantial change over the past five years
  • Acquisition activity in the industry has increased over the past five years
  • A shift towards more fuel-efficient vehicles is expected to constrain demand for fuel retailers
  • Industry Report - Industry Investment Chapter

    The Fuel Retailing industry is characterised by high capital intensity. IBISWorld expects that for every dollar spent on capital costs, $2.36 is spent on wages. The industry relies on employees to process customer transactions, manage inventory levels, stock shelves, display merchandise and maintain the site. The majority of service station staff are employed on a part-time or casual basis, keeping average wages low. Advancements in technology have helped to automate many manual tasks over the past five years, reducing the industry's overall reliance on labour. As a result, wage as a share of revenue has fallen over the period...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 an integrated operation
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as US dollars per New Zealand dollar and Number of motor vehicles in the Fuel Retailing industry impact industry performance..

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    What's in this report

    What is the Fuel Retailing in New Zealand Industry?

    Establishments in the industry are engaged in retailing fuels, including petrol, LPG or lubricating oils, typically at a service station. Industry players also retail convenience store goods and provide services such as car washing to supplement revenue.

    Industry Products
  • Petrol
  • Diesel and other fuel products
  • Non-fuel products and services
  • Oils, lubricants and additives
  • Industry Activities
  • Automotive CNG retailing
  • Automotive LPG retailing
  • Diesel oil retailing
  • Distillate retailing
  • Engine oil retailing
  • Kerosene 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
  • US dollars per New Zealand dollar
  • Number of motor vehicles
  • World price of crude oil
  • Domestic tourist visitor days

  • Current Performance
  • Consumer demand
  • Profit margins
  • Industry changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Profit
  • 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 in New Zealand
  • Taxi and Limousine Transport in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Petroleum Product Wholesaling in New Zealand
  • Petroleum Refining and Petroleum Fuel Manufacturing in New Zealand

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

  • Demand Determinants
    Major Markets
  • Households
  • Commercial firms
  • 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fuel Retailing Industry

  • Industry Globalization
    Z Energy Limited, BP New Zealand Holdings Limited, ExxonMobil New Zealand Holdings, Boran NZ Limited,
  • Table: Z Energy Limited - financial performance
  • Table: BP New Zealand Holdings Limited - financial performance
  • Table: ExxonMobil New Zealand Holdings - financial performance
  • Table: Boran NZ Limited - 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)

  • 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 can be used as fuel in suitably modified motor vehicles.
  • Petrol
  • A transport fuel, refined from crude oil, which is commonly used to power cars.
  • What Our Customers Say

    Why buy this report?

    The Fuel Retailing in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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