Industry Analysis & Industry Trends
The past five years have been a bumpy ride for petrol station owners. In the mid-2000s, the price of crude oil started rising and it took the global economic downturn to stop the upward trend. As prices soared, consumers started thinking twice about their driving habits. They started driving less whenever possible (for example, avoiding long trips for leisure purposes) and some switched to public transport for commuting purposes. This slowed demand growth for petrol and diesel. Businesses were faring better, but when the recession hit, no one was spared. The amount of fuel sold dropped in the second half of 2008 as consumers and corporations cut back spending.
IBISWorld expects that industry revenue will decline by 8.1% annually over the five years through 2012-13, to £15.6.. purchase to read more
Industry Report - Industry Key Buyers Chapter
The top four players in the industry will account for an estimated 53% of revenue in 2012-13, and IBISWorld estimates that the top 10 players will account for 91.8% of revenue. Supermarkets have rapidly gained market share over the past decade, with Tesco leading the way. They may not own many service stations, but the amount of fuel that they retail per site is much higher than the average. Oil companies have been losing market share to the supermarkets because oil companies have not been able to react to the lower petrol prices offered by operators such as Tesco and Morrisons. The supermarkets' market share is expected to continue to grow, as more independent dealers close up their businesses due to being unable to compete with supermarkets' pump prices... purchase to read more