Fuel Retailing in Australia Industry Market Research Report Now Updated by IBISWorld

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Fuel price volatility and significant shifts in industry structure have led to a changing industry landscape. For these reasons, industry research firm IBISWorld has updated its report on the Fuel Retailing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Erratic crude oil prices have led to significant industry revenue volatility.

The Fuel Retailing industry in Australia has experienced significant revenue volatility over the past five years. According to IBISWorld industry analyst Lauren Magner, “following the global financial crisis, the world price of crude oil fell by 36.3% in 2008-09, which contributed to a reduction in retail petrol prices in the following years and adversely affected industry revenue.” Although revenue recovered slightly in 2011-12 as a result of higher petrol prices, it is forecast to fall by 2.4% in 2012-13. Overall, revenue is expected to contract by an annualised 1.3% over the five years through 2012-13, to $39.8 billion. The decline reflects lower fuel prices (due to lower world prices of crude oil) and continued uncertainty in the global and domestic economies. The industry's main products are petroleum and diesel. Diesel sales are expanding more rapidly than petrol as motorists switch to diesel vehicles, which offer greater fuel economy. Over the five years through 2012-13, the volume of fuel sold by the industry is expected to increase at an annualised 0.7%.

According to Magner, “the industry's structure has changed markedly over the past five years, with supermarket chains growing in importance as oil companies reduce retail operations to focus on the more-profitable upstream oil and gas sector.” Despite increased mechanisation, the Fuel Retailing industry is expected to employ about 41,000 people in 2012-13, paying wages of almost $1.5 billion. The carbon tax (effective from 1 July 2012) does not currently apply to household transport fuels, light vehicle business transport or off-road fuel use by the agriculture, forestry and fishing industries. However, the government plans to establish an effective carbon price for heavy on-road fuel use from 1 July 2014. Doing so will increase the cost of fuel for transport firms, but the effect on demand for fuel is likely to be limited, given the lack of viable substitutes for road transport.

The Fuel Retailing industry has a high level of market share concentration. This has not changed dramatically over the past five years. However, merger and acquisition activity has led to changes in market share between retail chains. Major industry players include Woolworths, Wesfarmers, Caltex Australia, BP Australia and 7-Eleven. For more information, visit IBISWorld’s Fuel Retailing report in Australia industry page.

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IBISWorld industry Report Key Topics

Firms in the industry sell automotive fuel or lubricating oils at the retail level, 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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