Industry Analysis & Industry Trends
The Fuel Wholesaling industry has faced a slow-burning market for petrol over the past five years. The industry's performance has been heavily affected by volatile crude oil prices, which have caused shifts in revenue and equally large movements in costs, weighing on margins. IBISWorld expects industry revenue to fall at a compound annual rate of 0.3% to £71.9 billion over the five years through 2016-17. Revenue is expected to fall by 1.3% in 2016-17.
The overall decline in revenue is due to the sharp fall in the price of crude oil globally as a result of oversupply, which has fed into lower prices of petroleum products... purchase to read more
Industry Report - Industry Investment Chapter
The Fuel Wholesaling industry has low capital intensity as a result of the nature of wholesaling. For every £1.00 spent on capital, approximately £14.28 is spent on wages. Firms typically purchase and then move fuel products on to buyers as quickly as possible. The only significant capital expenditure is for storage facilities. Many of these are rented and operated by a third party, with only a small number owned by wholesalers outright.
The industry has substantial funding tied up in some fixed assets such as storage facilities, although much of this capacity has been in existence for many years. Other necessary capital equipment such as rail trucks and road tankers is often either leased or provided by other firms contracted to transport product. The.. purchase to read more