Despite higher demand, the industry will lose customers to gas outlets with on-site stores.
New York, NY (PRWEB) January 21, 2014
Performance of the Gas Stations industry has been volatile over the five years to 2013, with changes in industry revenue mirroring fluctuations in the world price of crude oil. Significant dips in the price of crude oil allow industry operators to lower the price they charge at the pump.
Lower worldwide demand drove down the price of crude oil in 2009, causing retailers to lower the price of vehicle fuel. “Volume sales of gasoline declined as high unemployment caused many Americans to stay at home more often than before,” according to IBISWorld Industry Analyst Hester Jeon. However, volume sales and price levels recovered in the years following the recession. As a result, industry revenue is anticipated to grow an annualized 0.7% to $136.9 billion in the five years to 2013, including a growth of 0.8% in 2013.
Despite the industry's recovery from the recession, operators are losing sales to establishments in the Gas Stations with Convenience Stores industry (IBISWorld report 44711). Consumers are increasingly favoring gas stations that operate alongside convenience stores. Likewise, gas station owners prefer having convenience stores on-site because the sale of convenience store items is more profitable than selling gasoline. “The shift among consumers and owners to gas stations with convenience stores has muted the industry's recovery from the recession,” says Jeon. Furthermore, retailers such as Costco and Dollar General have begun to offer vehicle fuel alongside their retail stores, adding another source of competition for industry operators.
Industry revenue is highly sensitive to trends in oil prices, which depend on global supply and demand. Oil prices are forecast to increase over the five years to 2018, and as the pace of global economic growth picks up, growth in demand will outpace growth in supply. Customers will absorb price increases as they return to the road and consumer spending rises. However, volume sales of gasoline at industry establishments are anticipated to decline as more consumers turn to gas stations with convenience stores and stations operated by major retailers. Finally, as hybrid and electric vehicles become more affordable, more consumers are anticipated to purchase these fuel-efficient vehicles, further lowering the demand for gasoline.
For more information, visit IBISWorld’s Gas Stations in the US industry report page.
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IBISWorld industry Report Key Topics
The Gas Stations industry comprises gas stations that retail automotive fuels, offer repair services and sell replacement parts and accessories. Gas stations that operate convenience stores on their premises are included in the Gas Stations with Convenience Stores industry (IBISWorld report 44711).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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