Gasoline & Petroleum Wholesaling in the US Industry Market Research Report from IBISWorld Has Been Updated

The Gasoline and Petroleum Wholesaling industry grew strongly during the five years to 2014, though this growth is mostly attributed to recovered losses since the recession; further, negative long-term trends will continue to plague the industry as players slowly exit due to thin profit margins. For these reasons, industry research firm IBISWorld has updated a report on the Gasoline & Petroleum Wholesaling industry in its growing industry report collection.

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Industry revenue will increase along with global crude oil prices.

New York, NY (PRWEB) February 23, 2014

The Gasoline and Petroleum Wholesaling industry grew strongly during the five years to 2014, though this growth is mostly attributed to recovered losses since the recession. The global recession and consequent declines in sales volume, along with heavily reduced prices, hurt revenue during that time. Overall, consumption and improvements in vehicle fuel efficiency have stagnated over the past five years. Crude oil price growth has also moderated following two years of strong growth after the recession. Rising domestic oil production and slowing demand from emerging economies have contributed to poor price growth. The world price of crude oil declined 0.9% in 2013 and is anticipated to fall another 3.8% in 2014. As a result, industry revenue is expected to fall 5.5% in 2014. Nevertheless, IBISWorld expects revenue to grow at an average annual rate of 10.8% to $284.1 billion in the five years to 2014, due to the recovery from recession lows.

According to IBISWorld Industry Analyst David Yang, "In terms of industry operations, industry players generate profit from purchasing crude oil and selling it to retail outlets." Therefore, the price of retail gasoline and crude oil strongly influence profit. Retail gasoline prices are a function of domestic demand for fuel, which may differ from the global supply and demand for fuel. There is typically a lag between crude oil prices and retail gasoline prices, which has led to falling profit margins over the past five years. Profit increased in 2009 because oil prices sharply declined, even though retail petroleum prices remained comparatively more stable. Since then, retail prices have matched crude oil price trends, cutting into profit margins for the industry.

Looking ahead, petroleum product prices are projected to increase over the next five years, as the global economy gains steam and demand for fuel expands worldwide. "Despite a slowdown in volume demand from US gasoline stations, as consumers switch to more fuel-efficient vehicles and prices stay elevated, revenue will increase in the five years to 2019," says Yang. Nevertheless, negative long-term trends will continue to plague the industry as players slowly exit due to thin profit margins. Gaps between changes in crude oil prices and US retail fuel demand are expected to limit profit and drive companies out of the industry.

For more information, visit IBISWorld’s Gasoline & Petroleum Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

The Gasoline & Petroleum Wholesaling industry distributes most of the same products as the Gasoline and Petroleum Bulk Stations industry (IBISWorld report 42271) but on a smaller scale. Operators in this industry purchase petroleum products directly from bulk stations and sell them to retailers, including gas stations, car parts retailers, warehouses, superstores and supermarkets, manufacturers and natural gas retail distributors.

Industry Performance
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Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
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Globalization & Trade
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Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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