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 - Starting a New Business Chapter
There are considerable barriers to entering the Fuel Wholesaling industry. The formidable competitive force posed by the distribution networks of incumbent fuel retailers and petroleum product refiners constitutes a major barrier to entry. Domestic refineries can readily sell the petroleum products they manufacture to retailers, large businesses or existing wholesalers. At the same time, these refiners or established independent petroleum operators own or lease the majority of seaboard terminals used to import fuel. Typically, prospective wholesale operators would need to displace existing firms. The substantial amount of capital required to establish or, more commonly, lease storage depots is an important barrier to entry.
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