Industry Analysis & Industry Trends
Volatile crude oil prices have driven industry performance over the past five years, fuelling shifts in revenue and equally large movements in costs. The industry is expected to generate revenue of £32.7 billion in 2012-13, up from £22.9 billion in 2007-08 (yielding annualised growth of 7.4%). However, this revenue gain is little more than a marker of rising costs, especially higher petroleum product prices. Indeed, the volume of petroleum products consumed in the United Kingdom has fallen over the past five years, and industry profitability has been stagnant.
Revenue is expected to grow by 1.1% in 2012-13, pushed up by a marginal increase in volumes sold. Much larger gains were made over the preceding two years, when fuel prices soared... purchase to read more
Industry Report - Industry Analysis Chapter
The industry has ridden the highs and lows of petroleum product prices, and the underlying shifts in crude oil prices, over the past five years. Industry revenue is largely driven by the interaction of volume and price movements. Before allowing for the general level of inflation, wholesale petrol and diesel prices have doubled over the period. In this climate, industry revenue is expected to have grown by 7.4% per year to total £32.7 billion in 2012-13. Although this gain sounds appealing, higher input costs and reduced sales volumes are expected to have resulted in industry profit remaining flat.
Oil prices (in US dollars) are expected to hold fairly steady in 2012-13, as supply and demand move more closely into line... purchase to read more