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

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The Fuel Retailing industry will continue to face challenging and volatile conditions. For this reason, industry research firm IBISWorld has updated its report on the Fuel Retailing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Volatile oil prices cause a revenue roller-coaster for industry operators

The Fuel Retailing industry has gone on a revenue roller-coaster over the past five years. Revenue is expected to drop by about 7.0% in 2012-13 to $32.4 billion. The decline reflects lower fuel prices (due to lower global crude oil prices) and slightly higher retail sales volumes. In the current global economic climate, the demand for oil has been lacklustre, putting downward pressure on prices. Industry revenue is expected to fall by an annualised 3.9% over the five years through 2012-13. The industry is expected to generate a profit of about $759.2 million and to account for about 0.2% of Australia's GDP. Fuel retailing is a high-volume, low-margin business.

The volumes of petroleum and diesel (the industry's main products) sold during 2012-13 are expected to be 15.6 billion litres and 7.9 billion litres, respectively. Diesel sales are expanding more rapidly than petrol, as motorists switch to diesel vehicles that feature greater fuel economy. The volume of petrol sold by the industry over the five years through 2012-13 is expected to edge down at an annualised 0.2%, compared with expected growth of 6.1% per year for diesel.

According to IBISWorld industry analyst M. Williams, “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 industry is expected to employ about 35,600 people in 2012-13, paying wages of about $1.2 billion.

“The outlook for the industry is coloured by an upward trend in fuel prices”, says Williams.

The carbon tax (effective from 1 July 2012) does not 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’s five largest operators are Wesfarmers Limited, Caltex Australia Limited, Woolworths Ltd, BP Australia Investments Pty Ltd and 7-Eleven Stores Pty Ltd.

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

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

IBISWorld Industry Report Key Topics
Firms in this industry sell automotive fuel or lubricating oils at the retail level, typically at a service station.
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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