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

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The industry's structure has changed markedly over the past five years, with supermarket chains growing in importance. For this reason, industry research firm IBISWorld has updated its report on the Fuel Retailing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Diesel sales are expanding more rapidly than petrol as motorists switch to diesel vehicles that offer greater fuel economy.

Operators in the Fuel Retailing industry in Australia have suffered through significant revenue volatility over the past five years. Following the global financial crisis, the world price of crude oil fell by 36.3% in 2008-09. This contributed to a reduction in retail petrol prices in the following years and adversely affected industry revenue in 2009-10 and 2010-11. Revenue recovered in 2011-12 as petrol prices soared, only to fall again in 2012-13. According to IBISWorld industry analyst Lauren Magner, “The recent oil price plunge is expected to flow on to a reduction in pump prices for consumers in 2014-15.” As fuel is a largely inelastic good, this will significantly erode revenue for industry operators, with revenue anticipated to decline by 7.8% this year. Overall, revenue is expected to contract by an annualised 1.4% over the five years through 2014-15, to total $37.2 billion.

The industry's main fuel-related products are petroleum and diesel. Diesel sales are expanding more rapidly than petrol as motorists switch to diesel vehicles that offer greater fuel economy. Over the five years through 2014-15, the volume of fuel sold by the industry is expected to increase at an annualised 0.9%. 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. “Coles and Woolworths have been highly successful in increasing their market share in the industry by offering subsidised petrol prices through discount docket schemes,” says Magner. Despite increased mechanisation, the industry is expected to employ an estimated 38,419 people in 2014-15, paying wages of more than $1.5 billion. The industry displays a medium level of market share concentration. Major players include Wesfarmers Limited, Woolworths Ltd, Caltex Australia Limited, BP Australia Investments Pty Ltd and 7-Eleven Stores Pty Ltd.

The Fuel Retailing industry is expected to undergo significant change over the next five-year period. Following the sale of its downstream assets to oil trader, Vitol, Shell has now withdrawn from the fuel retailing business. Despite this, Shell branding will be retained at all service stations, including those co-branded with Coles. Furthermore, in response to growing demand for premium fuels, Mobil branding has been reintroduced to 7-Eleven petrol stations.

For more information, visit IBISWorld’s Fuel Retailing industry in Australia report page.

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.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

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
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