Gasoline - Petroleum Wholesaling in The US Industry Report

INDUSTRY REPORT 42472
Gasoline & Petroleum Wholesaling in the

US
Very refined: Continued economic recovery from the COVID-19 pandemic will likely
sustain demand for gasoline and petroleum products
Grace Wood | January 2023
IBISWorld.com 1-800-330-3772 info@IBISWorld.com

Gasoline & Petroleum Wholesaling in the US January 2023
Contents
Recent Developments......................................................... 3 COMPETITIVE LANDSCAPE.......................... 22
ABOUT THIS INDUSTRY.................................. 5 Market Share Concentration............................................. 22
Key Success Factors........................................................22
Industry Definition................................................................5 Cost Structure Benchmarks............................................. 23
Major Players...................................................................... 5 Basis of Competition......................................................... 24
Main Activities..................................................................... 5 Barriers to Entry............................................................... 24
Supply Chain....................................................................... 6 Industry Globalization........................................................ 25
INDUSTRY AT A GLANCE................................ 7 MAJOR COMPANIES...................................... 26

Executive Summary............................................................ 9 Market Share Overview..................................................... 26
Related Companies........................................................... 26
INDUSTRY PERFORMANCE..........................10 Sunshine Gasoline Distributors Inc................................... 27
Motiva Enterprises LLC..................................................... 29
Key External Drivers.........................................................10 Bp Plc................................................................................ 31
Current Performance........................................................ 11 Edison Oil Company..........................................................33
Harbour Petroleum Corp. of Brevard Inc...........................35
INDUSTRY OUTLOOK.................................... 13
OPERATING CONDITIONS............................ 37
Outlook.............................................................................. 13
Industry Life Cycle............................................................. 14 Capital Intensity................................................................. 37
Technology & Systems......................................................38
PRODUCTS & MARKETS............................... 15 Revenue Volatility..............................................................39
Regulation & Policy........................................................... 39
Supply Chain..................................................................... 15 Industry Assistance........................................................... 40
Products & Services.......................................................... 15
Demand Determinants...................................................... 16 KEY STATISTICS............................................ 41
Major Markets....................................................................16
Industry Data..................................................................... 41
GEOGRAPHIC BREAKDOWN........................ 18 Annual Change..................................................................41
Key Ratios......................................................................... 41
Key Insights....................................................................... 18 Industry Financial Statement............................................. 42
Business Locations........................................................... 21
ADDITIONAL RESOURCES............................44
Additional Resources........................................................ 44
Industry Jargon..................................................................44
Glossary............................................................................ 44
CALL PREPARATION QUESTIONS............... 46

Role Specific Questions.................................................... 46
External Impacts Questions.............................................. 47
Internal Issues Questions.................................................. 48
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Recent Wholesale prices remain under pressure

Developments
The Department of Labor’s producer price index rose to signal that wholesale prices overall have jumped in
accordance with rising inflation. The bulk of this increase can be traced to soaring food and energy prices.
Supply chain and manufacturing disruptions in Russia and China

The ongoing Russia-Ukraine conflict and coronavirus-related restrictions in China have severely affected supply
chains. Certain sectors that rely on metals, chemicals, consumer goods, and food coming from these suppliers have
been negatively affected. Examples of such inputs range from chemicals, such as potash and ammonia, to minerals,
such as aluminum and copper. Additionally, chips used in computers and automobiles have experienced supply
chain issues partially stemming from tech manufacturer lockdowns in China.
This section last updated January 20, 2023
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About This Industry

Industry Definition The Gasoline and Petroleum Wholesaling industry distributes most of the same products as the Gasoline and
Petroleum Bulk Stations industry (IBISWorld report 42471), but on a smaller scale. Operators in this industry
purchase petroleum products directly from bulk stations and sell them to retailers, including gas stations, car parts
retailers, warehouses, superstores and supermarkets, manufacturers and natural gas retail distributors.
Major Players Sunshine Gasoline Distributors
Motiva Enterprises
Bp
Edison Oil Company
Harbour Petroleum
Offen Petroleum
Main Activities The primary activities of this industry are:
Gasoline
Crude oil
Distillate fuel
Jet fuel
Lubricating oil and greases
Liquefied petroleum gas
Residual oil
Asphalt
Wax
The major products and services in this industry are:
Gasoline
Crude oil
Distillate fuel
Jet fuel
Lubricating oil and greases
Other
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Supply Chain
SIMILAR INDUSTRIES
Natural Gas Distribution in the US Gasoline & Petroleum Bulk Gas Stations with Convenience Gas Stations in the US
Stations in the US Stores in the US
Gas Pipeline Transportation in the Refined Petroleum Pipeline Organic Chemical Pipeline
US Transportation in the US Transportation in the US
RELATED INTERNATIONAL INDUSTRIES
Fuel Wholesaling in the UK Petroleum Product Wholesaling in Petroleum Product Wholesaling in Oil Wholesale in China
Australia New Zealand
Fuel Wholesaling in Ireland
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Industry at a Glance
Key Statistics Key External Drivers % = 2018–23 Annual Growth
$928.0bn 2.6% 6.9%

Revenue Demand from gas stations World price of crude oil
Annual Growth Annual Growth Annual Growth

0.0% 0.5%
World production of oil Per capita disposable income
2018–2023 2023–2028 2018–2028
0.3%
2.1% -1.5% Industrial production index
$15.8bn Industry Structure

Profit
POSITIVE IMPACT
Annual Growth Annual Growth
Concentration Technology Change
2018–2023 2018–2023
Low Low
0.9% Industry Globalization
Low / Steady
MIXED IMPACT
1.7% Life Cycle Barriers to Entry
Profit Margin Mature Medium / Increasing
Annual Growth Annual Growth NEGATIVE IMPACT

2018–2023 2018–2023 Revenue Volatility Capital Intensity
Very High High
-0.1pp
Industry Assistance Regulation & Policy
Low / Steady Heavy / Steady
Competition
2,441 High / Increasing
Businesses
2018–2023 2023–2028 2018–2028 Key Trends

5.7% 3.2%
 Petroleum product pricing directly affects consumption
levels, and thus, industry performance
 Growth amid abysmal operating conditions can be attributed

53,917 to the depressed state of the industry early during the period
Employment
 Several major oil companies that previously competed in this
Annual Growth Annual Growth Annual Growth industry have shifted their focus to refining
2018–2023 2023–2028 2018–2028  Renewed global economic growth will bolster petroleum
consumption
10.1% 1.5%
 Domestic oil production is projected to be robust over the
next five years
 As crude oil prices stabilize, the industry will likely become

$6.2bn less volatile
Wages
 As oil prices have been volatile, industry operators have
been able to maintain profitability
2018–2023 2023–2028 2018–2028
8.9% 0.9%
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Products & Services Segmentation
Major Players SWOT
STRENGTHS
Low Imports
Low Product/Service Concentration
High Revenue per Employee
WEAKNESSES
Low & Steady Level of Assistance

High Competition
Very high Volatility
Low Profit vs. Sector Average
High Customer Class Concentration
High Capital Requirements
OPPORTUNITIES
High Revenue Growth (2005-2023)

High Performance Drivers
Industrial production index
THREATS
Low Outlier Growth

World price of crude oil
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Executive Summary Very refined: Continued economic recovery from the COVID-19 pandemic
will likely sustain demand for gasoline and petroleum products
The Gasoline and Petroleum Wholesaling industry has contended with highly volatile conditions over the past five
years as it performs in line with movements in the price of crude oil. The world price of crude oil plummeted in 2020
amid the COVID-19 pandemic and skyrocketed in 2021 and 2022 as the economy recovered. A sudden undersupply
of oil because of the conflict between Russia and Ukraine exacerbated price increases late in the period.
Wholesalers have benefited from the soaring demand for oil. Over the five years to 2023, industry revenue is
expected to grow at a CAGR of 2.1% to $928.0 billion, including a decline of 4.8% in 2023.
In addition to commodity prices affecting industry revenue, retail gasoline and crude oil prices also strongly influence
profit. Retail gasoline prices are a function of domestic demand for fuel, which may differ from global supply and
demand for fuel. There is typically a lag between crude oil prices and retail gasoline prices, which has led to
stagnant profit over the past five years. Even as oil prices have been volatile during the current period, wholesalers
have maintained stable profitability. Still, slim profit margins have urged integrated wholesalers to shift their focus
from wholesale operations to refining, making space for many smaller operators.
Over the next five years, petroleum wholesalers will struggle to maintain growth as the oil supply normalizes and
demand for oil detriorates. The aftermath of such a stark undersupply of oil will have a net negative effect on
petroleum wholesalers. Continued reliance on gasoline and petroleum products for everyday life will sustain some
growth for wholesalers. Still, a persistent shift toward renewable energy will ultimately threaten petroleum sales as
policymakers continue incentivizing hybrid vehicles and renewable energy becomes more accessible. Overall,
industry revenue is anticipated to fall at a CAGR of 1.5% to $860.2 billion over the five years to 2028.
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Industry Performance
Key External World price of crude oil

Drivers
Given that the US economy is highly dependent on the supply of crude oil from foreign sources, the Gasoline and
Petroleum Wholesaling industry's performance is heavily influenced by crude oil prices. When crude oil prices rise,
petroleum product prices also rise, fueling industry revenue growth. Growth in crude oil prices also tends to raise
industry purchase costs, negatively affecting profit margins. The world price of crude oil is anticipated to decline in
2023, posing a potential threat to the industry.
Demand from gas stations
Gas stations represent an important downstream market for the Gasoline and Petroleum Wholesaling industry.
When gas stations' sales increase, they tend to increase their purchases of gasoline, diesel and other fuels from
petroleum wholesalers. Demand from gas stations is expected to decrease in 2023.
World production of oil
High levels of oil production result in a greater volume of petroleum product output, which directly bolsters demand
for wholesale distribution services. Production levels also influence oil purchasing costs on a daily basis and affect
profitability for US bulk distributors. When production significantly decreases, crude oil prices will typically increase
sharply, resulting in higher costs for wholesalers. The world production of oil is expected to increase in 2023.
Industrial production index
The industrial production index measures the total industrial output in the US. The domestic manufacturing sector
uses large amounts of energy to operate, so the sector purchases significant quantities of fuel annually from
wholesalers. When industrial production increases, manufacturing energy consumption also increases, leading to
greater demand for petroleum products. The industrial production index is expected to increase in 2023,
representing a potential opportunity for the industry.
Per capita disposable income
Per capita disposable income is representative of consumers' propensity to spend on travel and gasoline and
petroleum products. When per capita disposable income falls, consumers are less likely to travel as often, lowering
demand for petroleum products. In 2023, per capita disposable income is expected to increase.
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Current Revenue for the Gasoline and Petroleum Wholesaling industry is

Performance anticipated to increase at a CAGR of 2.1% to $928.0 billion over the five
years to 2023, including a 4.8% decline in 2023 when profit will reach
1.7%.
Volatile oil prices disrupt wholesalers' performance

 Petroleum wholesalers' performance typically follows that of the world price of crude oil, which is
representative of global demand for oil.
 Over the past five years, oil prices fluctuated substantially because of the COVID-19 pandemic. Initially,
stay-at-home orders and travel restrictions reduced demand for oil and sent prices plummeting. After a
widespread vaccine rollout, oil prices skyrocketed amid pent-up demand for travel.
 The conflict between Russia and Ukraine precipitated a period of stark undersupply of oil and exacerbated
price increases.
 Wholesalers have lowered and raised product prices according to the vast fluctuations in supply and
demand.
Wholesalers get smaller as integrated companies seek higher margins

 Some major oil companies have shifted their focus away from wholesaling operations in favor of refining
because of the greater potential profit margins.
 The remaining petroleum wholesalers are overwhelmingly small private companies that rely more on labor.
 Despite the capital intensity of petroleum storage and distribution, growth in employment in the Gasoline
and Petroleum Wholesaling industry has outpaced sales over the past five years.
Environmental awareness reduces consumers' reliance on petroleum

 Previous fuel efficiency standards set by the Energy Independence and Security Act targeted an average
fuel-efficiency rate of 35.0 miles per gallon by 2020. In 2022, the Environmental Protection Agency raised
the target to 40.0 miles per gallon by 2026.
 To reach these targets, policymakers have incentivized the use of hybrid and electric vehicles. As these
vehicles have become more accessible for consumers, demand has shifted away from motor gasoline.
 Rising environmental consciousness among consumers has encouraged the adoption of additional fossil
fuel substitutes, like solar energy.
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Historical Performance Data

World price
Domestic of crude oil
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand ($ per
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) barrel)
2014 787,002 18,289 2,349 1,784 29,793 N/A N/A 3,336 N/A 93.1
2015 576,097 18,618 2,203 1,715 26,876 N/A N/A 3,063 N/A 48.8
2016 540,415 18,614 2,168 1,690 25,769 N/A N/A 2,942 N/A 43.2
2017 708,181 21,695 2,463 1,857 33,558 N/A N/A 3,990 N/A 50.9
2018 837,668 25,826 2,440 1,846 33,347 N/A N/A 4,047 N/A 64.8
2019 785,005 25,370 2,451 1,830 34,350 N/A N/A 4,175 N/A 56.9
2020 518,308 15,746 2,434 1,818 33,744 N/A N/A 3,785 N/A 39.4
2021 741,976 23,550 2,867 2,110 43,919 N/A N/A 5,025 N/A 68.0
2022 974,308 29,681 3,281 2,390 54,031 N/A N/A 6,265 N/A 104
2023 928,017 28,942 3,340 2,441 53,917 N/A N/A 6,195 N/A 90.3
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Industry Outlook
Outlook Over the five years to 2028, revenue for gasoline and petroleum
wholesalers is anticipated to fall at a CAGR of 1.5% to $860.2 billion, with
profit reaching 1.7% in 2028.
A dip in oil prices will mitigate wholesalers' growth

 Oil prices are set to fall dramatically over the next five years as supply normalizes and demand trends
downward.
 Lower oil prices and reduced demand will force wholesalers to lower product prices, squeezing sales.
 Falling prices of motor gasoline and jet fuel may prompt consumers to travel more, offsetting some of the
wholesaling industry's declines.
Competition is set to intensify as substitutes gain traction

 The campaign against fossil fuels will heat up over the next five years, urging consumers to consider
alternative energy sources.
 Consumers and policymakers alike are expected to push the adoption of electric vehicles, renewable energy
and nuclear energy.
 Still, oil and natural gas remain the most accessible energy sources in the United States. Extraction
technologies are likely to continue improving over the next five years, and the world's oil supply will remain
plentiful, keeping consumers hooked on petroleum products.
Efficiency trends bode poorly for the industry

 Recent legislative pushes toward improved fuel efficiency for cars and light trucks will moderate growth for
petroleum wholesalers over the next five years. In 2022, the Environmental Protection Agency (EPA) set a
target fuel-efficiency rate of 40.0 miles per gallon for 2026.
 Higher fuel-efficiency targets for vehicles encourage the sale of electric vehicles, curbing demand for
gasoline and petroleum products.
 Still, petroleum products will remain essential to everyday life for many consumers. Lower oil prices over the
next five years may also slow the shift toward electric vehicles.
Performance Outlook Data

World price
2023 928,017 28,942 3,340 2,441 53,917 N/A N/A 6,195 N/A 90.3
2024 907,676 28,425 3,443 2,522 54,834 N/A N/A 6,252 N/A 84.7
2025 893,624 28,176 3,528 2,590 55,461 N/A N/A 6,290 N/A 80.5
2026 882,452 27,957 3,630 2,670 56,267 N/A N/A 6,347 N/A 77.4
2027 872,265 27,712 3,743 2,760 57,121 N/A N/A 6,409 N/A 75.0
2028 860,202 27,570 3,868 2,861 57,989 N/A N/A 6,470 N/A 72.0
2029 718,498 23,392 3,717 2,773 52,303 N/A N/A 5,749 N/A 69.3
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Industry Life Cycle The life cycle stage of this industry is Mature
LIFE CYCLE REASONS
The growth in demand for petroleum products is expanding slowly

Wholesalers remain dependent on the US market for sales
The rate of technological change is low
Contribution to GDP
Growth in the Gasoline and Petroleum Wholesaling industry lags slightly behind that of the US economy. Still,
demand for petroleum products continues to expand since most products are considered staples for everyday life.
Market Saturation
Because of the massive scale of the petroleum sector, the Gasoline and Petroleum Wholesaling industry has not
reached market saturation. Existing wholesalers are typically small and contribute to a fragmented market since
larger-scale petroleum companies focus on refining or retailing.
Innovation
Although most product innovation occurs at the upstream refining level, wholesalers are increasingly focused on
petroleum products blended with biofuel or that include additives to lessen their toll on the environment.
Consolidation
The largest petroleum wholesalers are consolidating to combat fierce internal competition. Still, most wholesalers
remain small-scale since profit margins are slim.
Technology & Systems
Technological advances are minimal in the Gasoline and Petroleum Wholesaling industry. Wholesalers focus on
automation to make operations more efficient, sustainable and safe.
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Products & Markets

Supply Chain Key Buying Industries Key Selling Industries
1st Tier 1st Tier
Gas Stations in the US Refined Petroleum Pipeline Transportation in the US
Auto Parts Stores in the US Tank & Refrigeration Trucking in the US
Gas Stations with Convenience Stores in the US Petroleum Refining in the US
Manufacturing in the US Gasoline & Petroleum Bulk Stations in the US
2nd Tier 2nd Tier
Warehouse Clubs & Supercenters in the US Oil Drilling & Gas Extraction in the US
Wholesale Trade in the US Electrical Equipment Manufacturing in the US
Retail Trade in the US Metal Pipe & Tube Manufacturing in the US
Transportation and Warehousing in the US
Long-Distance Freight Trucking in the US
International Airlines in the US
Products & Services
Volatile travel patterns disrupt motor gasoline sales

 This product segment includes gasoline used for motor engines in vehicles.
 Motor gasoline is wholesalers' single most important commodity and the major refined petroleum product
distributed to gasoline retailers across the US.
 The growing demand for electric and fuel-efficient vehicles has threatened gasoline consumption and
mitigated motor gasoline sales.
 Stark declines and an even greater recovery in motor vehicle travel prompted by the COVID-19 pandemic
have disrupted motor gasoline sales in recent years.
Sales of crude oil are notoriously unstable

 This segment includes the sale of crude oil.
 Crude oil's contribution to wholesalers' revenue has fluctuated alongside volatile oil prices over the past five
years. Recent supply constraints prompted by the conflict between Russia and Ukraine have boosted
demand for crude oil.
 Still, volatile prices have complicated sales of crude oil and motivated wholesalers to turn to other segments
for more stable sales.
Sluggish industrial production limits demand for distillate fuel

 This segment includes the sale of distillate fuel, which is mostly composed of diesel.
 Trucks and large motor vehicles are the primary users of distillate fuel. Sluggish industrial activity has
reduced demand for trucking services, mitigating sales of distillate fuel in recent years.
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Jet fuel sales surge as international travel prospers

 This segment includes the sale of jet fuel used in gas turbine-powered aircraft.
 The COVID-19 pandemic pummeled jet fuel sales since air travel halted. Still, a strong recovery in air travel
in 2021 and 2022 aided this segment's recovery.
 Although petroleum-based jet fuel still dominates aircraft, alternative power sources like biojet fuel and
hydrogen-powered aviation may threaten jet fuel sales over the next five years.
Lubricating oil and grease sales increase alongside total vehicle miles
 This segment includes the sale of lubricating oil and greases, which are most often used in motor vehicles to
reduce friction.
 The COVID-19 pandemic and the associated reduction in vehicle travel hindered sales of lubricating oils. A
recovery in total vehicle miles traveled in 2021 and 2022 has boosted sales of lubricating oils.
Liquefied petroleum gas sells when consumers stay home

 This segment includes the sale of liquefied petroleum gas (LPG), residual oil, asphalt and wax.
 Residual fuel oil is the remaining crude oil after all other higher-value products are produced via refining.
LPG includes packaged LPG products for sale by retailers for home and business use, like outdoor
barbecues and gas heaters.
 As consumers spend more at home, as they did amid the COVID-19 pandemic, sales of LPG rise since
most of its uses are for the home.
Demand Activity in key sectors of the economy determines the demand for
Determinants gasoline and petroleum products.
For example, consumer and industrial transportation trends play a role in determining demand levels. A trend toward
increased private motor vehicle use over public transportation lifts demand for gasoline and automotive distillate at
the retail and wholesaling level. Likewise, if businesses choose road freight over rail for goods transportation,
demand for petroleum from trucking industries will rise, feeding through to retail sales and wholesalers.
The agriculture sector relies on distillate to fuel farm equipment, influencing demand for the services supplied by the
petroleum wholesaling industry. Weather conditions, competition from overseas suppliers, trends in government
financial support and demand for food ingredients from manufacturers influence agricultural activity. Over the past
five years, demand from the agriculture sector has been relatively stable since agricultural products are often
considered staples and production activity is consistent from year to year. Also, because of the nature of the
business and reliance on travel and consumer spending patterns, petroleum wholesalers tend to experience
seasonal shifts in demand. Demand in the summer months is higher than during the fall and winter. Travel and
recreational activities are typically higher in the summer and spring, increasing the demand for petroleum products.
Activity in the economy's manufacturing sector also directly affects the retail demand for fuel. Manufacturers require
a range of fuels as part of their production and distribution processes. Energy used by businesses and households
depends on various factors like weather, building design and age and cultural attitudes.
Major Markets
Resellers of refined petroleum dominate downstream markets

 This market resells refined petroleum products, including motor gasoline, jet fuel, distillate fuel and
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lubricating oil.
 Wholesale resellers are the next step in the petroleum product supply chain and comprise the majority of
sales for petroleum wholesalers. These smaller-scale wholesalers distribute products to retailers, including
gas stations, airlines, railroad operators and agricultural and industrial users.
 This market has grown over the past five years as domestic and international travel spiked in 2021 and
2022.
Business from crude oil resellers is growing

 This market includes wholesalers that resell crude oil.
 Wholesalers resell crude oil to agricultural and industrial users, who then turn the oil into usable petroleum
products.
 Like wholesalers of refined petroleum products, this market has increased in recent years because of the
high downstream demand for gasoline and jet fuel. The conflict between Russia and Ukraine has
exacerbated this trend.
Gasoline retailers benefit from rising vehicle miles

 This market includes gasoline retailers that purchase petroleum products from wholesalers.
 Wholesalers primarily distribute to small independent retailers since large integrated petroleum refiners and
marketers tend to supply their own outlets.
 Demand from gasoline retailers has been volatile over the past five years. A stark decline in vehicle miles
traveled amid the COVID-19 pandemic squeezed this market segment, but a resurgence in travel in 2021
and 2022 more than recovered business from gasoline retailers.
Alternative energies threaten commercial and residential markets

 This market includes nonmanufacturing commercial enterprises, like office buildings, supermarkets and
other retail stores, government establishments and educational institutions.
 Commercial and residential businesses use fuel for use in their own operations. Direct distribution to
commercial businesses and households is rare, keeping business from this market minimal and steady.
 As alternative energy sources, like wind and solar power, become more accessible, businesses and
households use less petroleum and gasoline.
Sluggish growth in industrial production squeezes the industrial market

 This market includes industrial users that purchase crude oil and residual fuel oil to power their plants,
including manufacturing plants that use combined heat-and-power systems and electricity generators.
 Business from industrial users has dwindled over the past five years as industrial production has slowed.
Specialist retailers dwindle as prices climb

 This market includes retailers of refined petroleum products other than gasoline, diesel and residual fuel oil.
 Specialized retail outlets have declined as a target market for wholesalers since the increased cost of
specialized petroleum products has businesses seeking alternatives.
Exports in this industry are Low and Steady
Imports in this industry are Low and Steady
Although the Gasoline and Petroleum Wholesaling industry handles imported petroleum products, it neither imports
nor exports petroleum directly. Detailed petroleum trade data is available for the upstream Petroleum Refining
industry (IBISWorld report 32411). Most locally refined products are sold via bulk wholesalers that on-sell to smaller
wholesalers in this industry. Local wholesalers then distribute petroleum products to retail gas stations and other end
users.
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Geographic Breakdown
Key Insights
Texas Texas Montana Kentucky New York Texas
478 Est. $286.5bn 11.1% -19.5% $198.0k 14,133
Most Establishments Highest Revenue Fastest Growth Slowest Growth Highest Average Most Employees
Wage
State Data for Gasoline & Petroleum Wholesaling in the US (2023)
Establishments Revenue Employment Wages

State Establishments Growth Rate Revenue Growth Rate Employment Growth Rate Wages Growth Rate
(2018-2023) (2018-2023) (2018-2023) (2018-2023)
Alabama 59 3.37% $4.7bn 1.53% 490 4.83% $29.6m 7.23%
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(2018-2023) (2018-2023) (2018-2023) (2018-2023)
Alaska 7 -4.90% $1.5bn -6.91% 162 0.50% $9.5m -1.23%
Arizona 65 8.62% $8.4bn 9.17% 326 6.58% $53.1m 15.20%
Arkansas 40 6.64% $3.6bn -0.69% 339 3.75% $23.5m 5.28%
California 295 6.83% $67.5bn 5.99% 3,865 6.76% $443.5m 12.72%
Colorado 82 9.54% $11.6bn 3.07% 1,129 15.68% $74.8m 9.13%
Connecticut 42 4.94% $4.3bn -11.64% 361 -1.33% $28.2m -6.07%
Delaware 5 -3.58% $754.9m -4.84% 71 4.86% $5.1m 1.86%
Florida 169 5.23% $59.2bn 6.30% 2,445 7.62% $391.3m 13.20%
Georgia 105 3.36% $14.6bn -4.55% 1,598 4.13% $95.2m 1.29%
Hawaii 8 2.71% $2.0bn 7.80% 421 21.81% $13.2m 14.37%
Idaho 21 18.47% $948.7m 1.22% 82 7.54% $6.1m 7.32%
Illinois 110 5.79% $36.7bn -5.82% 2,549 12.62% $282.7m 3.38%
Indiana 37 1.12% $8.9bn 3.27% 501 2.31% $57.7m 9.64%
Iowa 34 2.54% $3.3bn 5.66% 370 11.57% $22.4m 12.87%
Kansas 38 1.09% $7.5bn -4.45% 547 1.06% $49.4m 1.67%
Kentucky 49 6.36% $1.2bn -19.54% 207 -5.80% $8.8m -12.90%
Louisiana 59 2.56% $4.2bn -4.33% 429 1.36% $27.2m 1.48%
Maine 10 2.13% $919.5m -3.14% 66 -3.77% $5.7m 1.80%
Maryland 30 2.13% $3.3bn -2.38% 290 6.67% $23.2m 3.89%
Massachusetts 46 3.90% $19.9bn 5.01% 1,667 11.76% $126.8m 10.99%
Michigan 89 4.33% $9.9bn -4.88% 611 -4.40% $63.1m 0.56%
Minnesota 67 7.81% $11.1bn -5.52% 2,098 19.36% $85.3m 3.69%
Mississippi 50 10.03% $4.9bn 6.17% 577 14.52% $32.0m 12.83%
Missouri 70 6.13% $7.2bn -1.64% 759 6.54% $45.9m 4.08%
Montana 12 3.71% $1.3bn 11.12% 87 15.14% $8.9m 18.53%
Nebraska 25 1.68% $2.3bn -0.50% 325 9.02% $15.0m 5.84%
Nevada 20 2.13% $3.0bn 2.29% 406 7.56% $19.6m 8.43%
New 13 5.39% $1.1bn 3.17% 165 5.05% $7.4m 10.17%

Hampshire
New Jersey 91 3.94% $12.4bn -5.51% 1,351 14.22% $241.2m 24.85%
New Mexico 20 4.56% $943.2m 0.88% 140 6.33% $6.4m 8.14%
New York 146 4.35% $58.4bn 9.22% 1,930 6.79% $382.2m 16.09%
19 IBISWorld.com

(2018-2023) (2018-2023) (2018-2023) (2018-2023)
North Carolina 80 4.56% $7.9bn 0.89% 834 7.24% $51.3m 7.11%
North Dakota 14 3.13% $991.9m 4.31% 59 5.10% $6.2m 9.91%
Ohio 84 4.01% $17.1bn 5.46% 1,391 8.91% $116.8m 12.99%
Oklahoma 83 2.60% $15.7bn 2.15% 1,439 7.23% $100.6m 8.05%
Oregon 42 10.07% $4.7bn -0.42% 498 8.91% $31.7m 6.35%
Pennsylvania 94 4.07% $17.1bn -3.11% 1,333 3.51% $111.9m 2.93%
Rhode Island 4 -4.37% $401.3m 1.64% 27 4.18% $2.5m 7.02%
South Carolina 45 3.99% $6.1bn 1.54% 594 8.72% $39.2m 7.70%
South Dakota 12 5.92% $795.3m 8.51% 55 4.56% $5.3m 15.83%
Tennessee 56 8.64% $5.8bn 10.51% 453 17.18% $36.6m 16.64%
Texas 478 4.92% $286.5bn 2.57% 14,133 9.19% $1.9bn 8.96%
Utah 32 10.99% $4.4bn 9.04% 405 17.09% $29.0m 15.82%
Vermont 3 0.00% $662.4m -5.66% 140 18.87% $5.1m 3.54%
Virginia 48 4.24% $3.6bn -8.32% 350 -3.58% $23.0m -2.90%
Washington 77 15.79% $9.2bn 0.75% 671 6.15% $60.3m 7.09%
West Virginia 16 5.92% $1.1bn 10.04% 128 10.99% $6.8m 15.86%
Wisconsin 54 2.38% $2.2bn -13.04% 346 -0.06% $15.0m -6.70%
Wyoming 14 6.96% $3.0bn 9.77% 155 10.06% $19.5m 16.10%
20 IBISWorld.com
Business Locations Wholesalers settle in the Southeast to be near refineries

 The Southeast is home to several large refineries that produce gasoline, diesel and other petroleum
products, providing a ready supply of raw materials for wholesalers.
 The region is also home to a growing population, creating demand for gasoline and other petroleum
products.
 Petroleum wholesalers also choose to locate in the Southeast because of the region's major ports, including
the Port of New Orleans and the Port of Tampa. These ports are key transportation hubs for the import and
export of petroleum.
Texas draws petroleum distributors to the Southwest
 Texas holds the largest share of gasoline and petroleum wholesalers in the US. The state is also the largest
home to petroleum refineries as it contains several significant oil and gas fields.
 The Southwest has several major transportation corridors, including interstate highways and rail lines,
making it an attractive location for transporting raw materials and finished products.
 Favorable business climates with low taxes provide additional incentives for petroleum wholesalers to settle
in Southwestern states.
California leads petroleum wholesaling in the West
 California is the second-most popular destination for petroleum wholesalers. The state's large pool of
refineries and substantial population bring wholesalers to the area.
 Major ports in the region, including the Port of Los Angeles and the Port of Long Beach, prompt wholesalers
to locate nearby to have access to imported oil.
21 IBISWorld.com
Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
Integrated refiners move away from wholesaling
 Although many petroleum wholesalers are integrated with other parts of the supply chain, few wholesalers
also control refining businesses.
 Integrated petroleum refiners have been moving away from product wholesaling because of the slim profit
margins. Integrated companies have instead focused on refining and bulk distribution, reducing industry
concentration.
 The largest petroleum wholesaler in the US, Sunshine Gasoline, controls the distribution and various retail
outlets for petroleum products but is not involved with refining.
The massive scale of the petroleum sector keeps wholesaling fragmented
 Because of the substantial downstream demand for gasoline and petroleum products, there are more than
2,000 petroleum wholesalers in the US in 2023.
 New wholesalers continue entering the industry as the need for petroleum products rises. The consistent
emergence of small-scale wholesalers keeps market share concentration low.
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
Factors
Ability to pass on cost increases:
Since oil and gas costs fluctuate violently, it is imperative for distributors to be able to pass on any increases in the
medium to long term to ensure profitability.
Guaranteed supply of key inputs:

Due to the frequent OPEC restrictions on oil output, it is essential for operators in the non-bulk wholesaling industry
to ensure their supply from alternative sources or else they will have no product to sell.
Access to required utility infrastructure:

It is essential for non-bulk distributors to be connected to the necessary pipelines from bulk terminals to ensure raw
material supply.
Supply contracts in place for key inputs:

Companies in the industry must ensure a supply of the products traded; likewise, establishment of contracts with
bulk terminals is advantageous.
Having contacts within key markets:

Since direct selling is the major method adopted within this industry, it is imperative that operators' sales staff have
good contact across a range of markets.
22 IBISWorld.com
Cost Structure
Benchmarks
Profit
Long-term contracts keep profit stable
 Volatile crude oil prices threaten profit margins for less

established petroleum wholesalers. To neutralize price
fluctuations, wholesalers establish long-term contracts with
suppliers.
 Wholesalers typically mark up prices, which has cushioned

profit margins during economic downturns, like the COVID-19
pandemic. Still, profit fell marginally when demand for gasoline
and petroleum plummeted in 2020.
 A strong resurgence in travel following pandemic declines has

boosted profit in recent years.
 In 2023, profit is anticipated to comprise 1.7% of industry

revenue, down marginally from 1.8% in 2018.
Wages
Wages are minimal but increasing
 Labor costs are relatively insignificant for petroleum

wholesalers since operations are more capital-intensive than
labor-intensive. Technological advancements have enabled
petroleum wholesalers to retain the minimal labor needed to
maintain facilities.
 Wage costs have been relatively steady over the past five
years, increasing marginally as a share of revenue. A surge in
demand for petroleum products in 2021 and 2022 prompted
wholesalers to hire additional labor, boosting wage costs.
 In 2023, wages are anticipated to account for 0.7% of revenue.
23 IBISWorld.com
Purchases
Purchases dominate wholesalers' cost structures
 Petroleum wholesalers purchase goods like motor gasoline,

distillate fuel oil, bottled liquefied petroleum gas, kerosene and
other products, for resale.
 While wholesalers' purchase costs can change dramatically

from year to year, they've remained stable over the past five
years since operators adjusted their purchase volumes
according to commodity price fluctuations.
 In 2023, purchase costs are estimated to comprise 94.8% of

revenue.
Basis of Competition in this industry is High and the trend is Increasing

Competition
The Gasoline and Petroleum Wholesaling industry is highly competitive.
Little competition comes from outside the industry, but competition among companies within the industry is intense.
Wholesalers compete in marketing their products and forging strong relationships with retail and industrial
customers. While price competition exists, pricing is primarily driven by the cost of the products traded. In addition,
the promotion of branded products can aid sales.
Industry knowledge is also an important source of competition because of the wide range of products traded. Given
the scarcity of skilled workers, distributors must compete to acquire their services. Skilled staff members are
necessary to ensure product quality, as fuels can be dangerous if they haven't been blended properly. Employees
also need a good understanding of supply and cost volatility factors to minimize the associated risks. The value-
adding process requires skilled employees, which are considered a highly sought-after competitive advantage.
Barriers to Barriers to Entry in this industry are Medium and the trend is Increasing
Entry
24 IBISWorld.com
Legal Barriers to Entry Checklist
The Gasoline and Petroleum Wholesaling industry is Competition High

highly regulated and knowledge-intensive, which presents
a barrier to new entrants. Wholesalers must be aware of
Concentration Low
and adhere to reporting requirements and regulations
surrounding downgrading and sales documentation.
Life Cycle Stage Mature
Start-up Costs
Technology Change Low
Since petroleum wholesaling is highly capital-intensive,
new entrants need to invest in substantial infrastructure Regulation & Policy Heavy
and equipment. New entrants also contend with volatile oil
prices, which can mitigate the return on investment in any
Industry Assistance Low
given year.
Differentiation
Because of the substantial number of wholesalers, new

entrants have limited access to existing infrastructure,
making it difficult for them to carve out space in the
market. Companies wishing to enter the industry must
also confront incumbent companies with strong brand
recognition.
Capital Intensity
Wholesaling petroleum requires significant capital

investment in storage and transportation facilities, tankers
and other vehicles. Acquiring sufficient funds and suitable
infrastructure and equipment can impede new entrants.
Industry Globalization in this industry is Low and the trend is Steady

Globalization
The petroleum sector is highly globalized and experiences a high level of global trade. Integrated multinational
corporations and state-owned petroleum companies dominate global petroleum. Still, unlike the Oil Drilling and Gas
Extraction industry (IBISWorld report 21111) and the Petroleum Refining industry (32411), the Gasoline and
Petroleum Wholesaling industry has low globalization. The cost of distributing small quantities of petroleum products
across large areas is prohibitively high and it is typically only profitable for companies to operate in a more localized
area. Although some wholesalers (AmeriGas) distribute propane and other products to Canada, the overall level of
industry globalization is low and steady.
25 IBISWorld.com
Major Companies
Market Share Overview
Related Companies
Competitors Company Type Employee Segment Revenue ($m) Market Share (%) Profit ($m)
Sunshine Gasoline Distributors All Star 500+ Employees 55,898.2 5.98 1,062.1
Motiva Enterprises All Star 500+ Employees 7,403.8 1.11 266.5
Bp Golden Goose 500+ Employees 7,403.8 1.11 774.2
Edison Oil Company Laggard 20–99 Employees 498.7 0.05 9.5
Harbour Petroleum Laggard 10–19 Employees 191.8 0.02 3.6
Offen Petroleum Laggard 100–499 Employees 22.8 0 0.4
26 IBISWorld.com
Companies with 5.0% industry market share are displayed in the PDF version of this report. You can view insights for all companies associated
with this industry on my.ibisworld.com
Sunshine Gasoline Distributors Inc.
Company Overview
Brands & Trading Mobil BP Marathon Shell Chevron Exxon
Names
Description Sunshine Gasoline Distributors is a private company with an estimated 5,828 employees. In the US, the company
has a notable market share in at least two industries: Gasoline & Petroleum Wholesaling, Gas Stations with
Convenience Stores and Gas Stations with Convenience Stores. Their largest market share is in the Gasoline &
Petroleum Wholesaling industry, where they account for an estimated 6.0% of total industry revenue and are
considered an All Star because they display stronger market share, profit and revenue growth compared to their
peers.
COMPANY TYPE Private Company

TOTAL COMPANY $55.9bn
REVENUE
EMPLOYEES 5,828
Other Industries Gas Stations with Convenience Stores in the US
Analyst Insights Sunshine Gasoline targets acquisitions based in Florida for growth
In 2022, Sunshine Gasoline purchased a slew of wholesale dealer accounts from Miller Oil Co. The company
focuses its distribution operations in Florida, opting to purchase only the Florida accounts from Miller Oil. Sunshine
Gasoline benefits from its vertical integration with retail gas stations, which provides the company with sufficient
funds to expand its wholesale operations.
M&A
27 IBISWorld.com
Sunshine Gasoline Distributors Inc.
Company Overview
Industry Market Estimated Industry Market Share
Share, Revenue
and Profit 5.98% Strong
Current Year
(2022)
Estimated Industry Revenue
$55.9bn Strong
Current Year
(2022)
Estimated Profit Margin
1.9% Weak
Current Year
(2022)
28 IBISWorld.com
Motiva Enterprises LLC
Company Overview
Description Motiva Enterprises is a private company with an estimated 2,700 employees. In the US, the company has a notable
market share in at least two industries: Petroleum Refining, Gasoline & Petroleum Wholesaling and Gasoline &
Petroleum Wholesaling. Their largest market share is in the Petroleum Refining industry, where they account for an
estimated 4.2% of total industry revenue.

REVENUE
EMPLOYEES 2,700
Other Industries Petroleum Refining in the US
Analyst Insights Motiva suspends major construction of petrochemical facilities at Texas-based refining operation
Motiva Enterprises LLC (Motiva) suspended its $6.6 billion plan to add petrochemical facilities to its Texas-based
refining operations in July, 2021. The previous plans for the project would have created the largest refining and
petrochemical operation in the United States. Motiva’s suspension of the facility follows the decision of its parent
company, Saudi Aramco, to reverse its initial plans to diversify, instead opting to focus on core business of
pumping natural gas and oil.
New Activity
Motiva expands partnership with GetUpside with launch of its new Starter Plan
In February, 2021, Motiva launched its newest Motiva-sponsored Starter Plan in a partnership with GetUpside, a
technology company offering cash back and rewards systems to customers and retailers. With the release of the
new Starter Plan, gas stations offering the plan receive free marketing exposure to over 26.0 million consumers
daily. Motiva and GetUpside began their partnership in 2018 to bring GetUpside programs to Motiva-suppled sites
across the country.
New Activity
29 IBISWorld.com
Motiva Enterprises LLC
Company Overview
Share, Revenue
and Profit 1.11% Moderate
Current Year
(2021)
$7.4bn Moderate
Current Year
(2021)
3.6% Moderate
Current Year
(2021)
30 IBISWorld.com
Bp Plc
Company Overview
Brands & Trading IVESCO AMOCO BP Castrol Wild Bean Café Wild Bean Café Ampm Ampm MWI Veterinary
Supply ARAL MWI Veterinary Supply ARAL AMOCO BP IVESCO Castrol
Names
Description Bp is a public company headquartered in United Kingdom with an estimated 65,900 employees. In the US, the
company has a notable market share in at least nine industries: Mining, Oil Drilling & Gas Extraction, Petroleum
Refining, Lubricant Oil Manufacturing, Gasoline & Petroleum Bulk Stations, Gasoline & Petroleum Wholesaling, Gas
Stations, Oil Pipeline Transportation, Motor Oil Manufacturing and Oil Pipeline Transportation. Their largest market
share is in the Motor Oil Manufacturing industry, where they account for an estimated 22.1% of total industry
revenue.
COMPANY TYPE Public Company

REVENUE
EMPLOYEES 65,900
Other Industries Oil Drilling & Gas Extraction in the US

Petroleum Refining in the US
Lubricant Oil Manufacturing in the US
Gasoline & Petroleum Bulk Stations in the US
Gas Stations in the US
Oil Pipeline Transportation in the US
Motor Oil Manufacturing in the US
Analyst Insights Stage 1 of Herschel Expansion project completed in the Gulf of Mexico
In February 2022, BP announced the safe and successful start-up of its Herschel expansion project in the Gulf of
Mexico. The new project utilizes existing infrastructure to maximize value in the Na Kika Catchment Area. Phase 1
of the project encompasses the development of new subsea production systems and the first of up to three wells
tied to the Na Kika platform. At its peak, BP estimates the first well to increase peak annual average production by
15 mboed. BP and Royal Dutch Shell PLC each hold a 50.0% working interest in the development.
COVID Discontinued Activity ESG New Activity Product Innovation
BP exits stake with Russian energy company amid global tensions

On February 27, 2022, BP PLC (BP) exited its 19.75% shareholding in PJSC Rosneft Oil Company (Rosneft) it has
been involved since 2013. Rosneft is Russia’s state-owned integrated oil company which has recently drawn flak
amid Russia’s decision to invade Ukraine. World governments and global enterprises have recently moved to enact
financial controls aimed to hit Russia’s financial, energy and transportation sectors, including BP’s recent decision
to cut its ties with the energy giant. BP-nominated directors currently serving on the Rosneft board have also
resigned with immediate effect.
COVID Product Innovation
Financials suffer and project delays mount during the coronavirus pandemic
Total BP sales and other operating revenues fell 35.3% to $198.9 billion in 2020, driven by lower crude demand and
product prices during the COVID-19 (coronavirus) pandemic. Some of the company’s project development
timelines, such as the Mad Dog 2 project, were also negatively affected by the coronavirus pandemic and delays in
the fabrication of the floating production unit. First oil from the Mad Dog 2 project is expected in the second
quarter of 2022 and is estimated to add 120 thousand barrels of oil equivalent a day (mboed).
COVID Discontinued Activity ESG New Activity Product Innovation
BP enters US offshore wind market in 2021

In 2021, BP and Equinor ASA completed the formation of a strategic offshore wind partnership off the US East
Coast. The two companies were selected for the largest-ever US offshore wind award for its Empire Wind and
Beacon Wind projects which are expected to supply New York State with 3.3 gigawatts (GW) of power. The new
partnership is estimated to develop up to 4.4 GW through the two projects and the companies are jointly seeking
other offshore wind opportunities. BP aims to grow its net renewable generating capacity from 2.5 GW in 2019 to
20GW by 2025 and 50GW by 2030.
Product Innovation
31 IBISWorld.com
Bp Plc
Company Overview
Industry Market Market Share
Share, Revenue
and Profit 1.11% Moderate 0.3%
Current Year Annual Growth
(2021) (2017–21)
Industry Revenue
$7.4bn Moderate 12.2%

(2021) (2017–21)
Profit Margin
10.46% Strong 1.0%

(2021) (2017–21)
32 IBISWorld.com
Edison Oil Company
Company Overview
Brands & Trading Edison Oil
Names
Description Edison Oil Company is a private company with an estimated 49 employees. In the US, the company has a notable
market share in at least one industry: Gasoline & Petroleum Wholesaling, where they account for an estimated 0.1%
of total industry revenue.

TOTAL COMPANY $498.7m
REVENUE
EMPLOYEES 49
Financial Edison Oil Company - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2017 716.5 6.4 13.6 6.2
2018 868.9 21.3 16.5 21.3
2019 1,371 57.8 26 57.6
2020 918.7 -33 17.5 -32.7
2021 468.4 -49 8.9 -49.1
2022 498.7 6.5 9.5 6.7
Source: IBISWorld
Note: * Estimates
33 IBISWorld.com
Edison Oil Company
Company Overview
Share, Revenue
Current Year
(2022)
$498.7m Moderate
Current Year
(2022)
1.9% Strong
Current Year
(2022)
34 IBISWorld.com
Harbour Petroleum Corp. of Brevard Inc.
Company Overview
Brands & Trading Harbour Petroleum
Names
Description Harbour Petroleum is a private company with an estimated 10 employees. In the US, the company has a notable
market share in at least one industry: Gasoline & Petroleum Wholesaling, where they account for an estimated 0.0%
of total industry revenue.

TOTAL COMPANY $191.8m
REVENUE
EMPLOYEES 10
Financial Harbour Petroleum Corp. of Brevard Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2018 599.5 N/C 11.4 N/C
2019 1,102.6 83.9 21 84.2
2020 708 -35.8 13.5 -35.7
2021 180.2 -74.5 3.4 -74.8
2022 191.8 6.4 3.6 5.9
Source: IBISWorld
Note: * Estimates
35 IBISWorld.com
Harbour Petroleum Corp. of Brevard Inc.
Company Overview
Share, Revenue
Current Year
(2022)
$191.8m Moderate
Current Year
(2022)
1.9% Moderate
Current Year
(2022)
36 IBISWorld.com
Operating Conditions
Capital The level of capital intensity is High

Intensity
The Gasoline and Petroleum Wholesaling industry is highly
capital-intensive, as the distribution of gasoline and
petroleum requires heavy machinery and specialized
facilities. In 2023, the average industry operator spends
$1.18 on capital for every $1.00 spent on labor. Petroleum
wholesalers invest in storage tanks, pumps, meters, hoses,
trucks and other related equipment. Wholesalers are also
dependent on skilled employees, boosting wage costs. To
successfully operate facilities, wholesalers need petroleum
engineers, trained oil and gas workers, procurement
professionals and other skilled employees. Still, similar to
the oil and gas sector, wages' share of revenue is low
because of the scale of the petroleum wholesaling
business. Capital intensity has declined over the past five
years as wages have slightly encroached on capital
investments.
37 IBISWorld.com
Technology & Potential Disruptive Innovation: Factors Driving Threat of Change

Systems
Level Factor Disruptive Description

Effect
Low Rate of Unlikely A ranked measure for the number of patents

Innovation assigned to an industry. A faster rate of new
patent additions to the industry increases the
likelihood of a disruptive innovation occurring.
High Innovation Likely A measure for the mix of patent classes

Concentration assigned to the industry. A greater
concentration of patents in one area increases
the likelihood of technological disruption of
incumbent operators.
Low Ease of Entry Unlikely A qualitative measure of barriers to entry. Fewer

barriers to entry increases the likelihood that
new entrants can disrupt incumbents by putting
new technologies to use.
Very High Rate of Entry Very Likely Annualized growth in the number of enterprises
in the industry, ranked against all other
industries. A greater intensity of companies
entering an industry increases the pool of
potential disruptors.
High Market Likely A ranked measure of the largest core market for
Concentration the industry. Concentrated core markets
present a low-end market or new market entry
point for disruptive technologies to capture
market share.
The rate of new patent technologies entering the industry is low, which limits the potential for innovations. A low rate does
not mean that innovations cannot occur, just that the likelihood of some innovation materializing as a threat is lower.
However, the concentration of technologies is high in this industry. This suggests that industry operators have exposure to
potentially unforeseen areas of innovation.
Additionally, this industry's structure makes it difficult for new operators to enter and succeed. These barriers have the
potential to disincentivize potential disruptors. Despite these barriers, the industry is experiencing a rapid growth in the
number of companies. A difficult operating environment for new entrants combined with a large cohort of them may create a
situation where these companies may take on a disruptive trajectory in non-traditional markets.
The major markets for this industry are highly concentrated, which implies that the market has a focus on key customer
segments. This presents an opportunity for strategic entrance into lower-end markets or unserved markets for innovations
to take on a disruptive trajectory.
The Gasoline and Petroleum Wholesaling industry has been disrupted by the
rise in renewable energy as consumer preferences shift toward
environmentally-friendly products.
Renewable energy will continue to replace gasoline and petroleum products, decreasing business for petroleum
wholesalers. The rise in electric vehicles has also reduced demand for gasoline and petroleum as they use alternative fuels
to operate. Further research and development in renewable energy will continue to disrupt gasoline and petroleum
wholesaling.
The level of technology change is Low
The Gasoline and Petroleum Wholesaling industry is subject to a low level of

technological change.
For the most part, research and development (R&D) efforts, both in this industry and across the petroleum products supply
chain, are intended to improve operating efficiency. In recent years, R&D has focused on industrial automation, especially
regarding supply management, sustainability and safety. Portable level gauging and sampling equipment have enabled
38 IBISWorld.com
wholesalers to test and control liquid levels more efficiently, improving safety. More effective refrigerants also allow
wholesalers to store products safely and in a single facility. Wholesalers have pursued operational efficiency
advancements, like computerized supply and cost management systems, that enable them to manage their inventory and
lower costs. GPS-based tracking and route optimization software have also helped petroleum wholesalers deliver products
faster and more reliably.
Revenue The level of volatility is Very High

Volatility
Petroleum wholesalers are sensitive to shifts in oil prices

 Oil prices increase sharply during periods of excess demand and fall during periods of excess supply. Global
economic and political shifts can cause the world price of crude oil to surge or plummet in any given year.
 A sudden drop in demand for oil amid the COVID-19 pandemic curbed oil prices in 2020 as consumers stayed at
home and travel halted. Amid an oversupply of oil, petroleum wholesalers were forced to lower prices.
 In 2022, the conflict between Russia and Ukraine caused oil prices to surge as Russia holds roughly 11.0% of the
world's oil. Petroleum wholesalers benefited from the sudden surge in demand.
Domestic trips surged amid widespread vaccination

 Consumers that postponed or canceled travel plans because of the COVID-19 pandemic flocked to airports when
vaccines rolled out across the globe.
 Domestic trips by US residents swelled in 2021 and continued to climb in 2022 when foreign countries reopened
their borders.
 The pent-up demand for fuel used in cars and airplanes nearly overwhelmed petroleum wholesalers, who
recovered from pandemic declines in less than a year.
Regulation & The level of regulation is Heavy and the trend is Steady
Policy
Reporting requirements
Petroleum bulk storage facilities are subject to the reporting requirements of Section 313 of the Emergency Planning and
Community Right-to-Know Act of 1986 (EPCRA) and of Section 6607 of the Pollution Prevention Act of 1990 (PPA),
commonly referred to as the Toxic Release Inventory (TRI). Petroleum storage facilities have to report annually on chemical
release and waste management. Wholesalers are also required to label motor fuels containing alcohol.
Sales documentation
Petroleum wholesalers are required to provide sales documentation like invoices, shipping papers or other documentation
for each commercial sale of petroleum products. Documentation has to identify the quantity and name of the product, the
grade of product, the automotive fuel rating, the oxygenate type and content (if applicable), the name and address of the
39 IBISWorld.com
seller and buyer and the date and time of the sale.
The Ultra-Low-Sulfur Diesel Fuel (ULSD) Rule
The ULSD Rule prohibits any business downstream of the refiner or importer from downgrading more than 20.0% of its
annual volume of 15.0-ppm highway diesel to 500.0-ppm highway diesel. This provision discourages downgrading within
the diesel pool during the ULSD phase-in period. Given the uncertainties surrounding the transportation of ULSD, the
20.0% downgrade rule was particularly difficult when the first batches of ULSD were transported.
Industry The level of industry assistance is Low and the trend is Steady
Assistance
Public
COVID-19
In response to the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES)
Act in 2020. As part of the Act, the Paycheck Protection Program (PPP) provided forgivable loans to small businesses.
Nearly all gasoline and petroleum wholesalers were eligible for PPP aid as most of them employ fewer than 500 workers.
Private
The Petroleum Marketers Association of America (PMAA)
The PMAA represents 8,000 independent petroleum marketers nationwide, including small business-serving farms, homes,
other businesses and gasoline and petroleum wholesalers. PMAA provides information and service programs and
legislative and regulatory representation to its members and partners, like BP PLC and Motiva Enterprises LLC.
40 IBISWorld.com
Key Statistics
Industry Data
World price
2014 787,002 18,289 2,349 1,784 29,793 N/A N/A 3,336 N/A 93.1
2015 576,097 18,618 2,203 1,715 26,876 N/A N/A 3,063 N/A 48.8
2016 540,415 18,614 2,168 1,690 25,769 N/A N/A 2,942 N/A 43.2
2017 708,181 21,695 2,463 1,857 33,558 N/A N/A 3,990 N/A 50.9
2018 837,668 25,826 2,440 1,846 33,347 N/A N/A 4,047 N/A 64.8
2019 785,005 25,370 2,451 1,830 34,350 N/A N/A 4,175 N/A 56.9
2020 518,308 15,746 2,434 1,818 33,744 N/A N/A 3,785 N/A 39.4
2021 741,976 23,550 2,867 2,110 43,919 N/A N/A 5,025 N/A 68.0
2022 974,308 29,681 3,281 2,390 54,031 N/A N/A 6,265 N/A 104
2023 928,017 28,942 3,340 2,441 53,917 N/A N/A 6,195 N/A 90.3
2024 907,676 28,425 3,443 2,522 54,834 N/A N/A 6,252 N/A 84.7
2025 893,624 28,176 3,528 2,590 55,461 N/A N/A 6,290 N/A 80.5
2026 882,452 27,957 3,630 2,670 56,267 N/A N/A 6,347 N/A 77.4
2027 872,265 27,712 3,743 2,760 57,121 N/A N/A 6,409 N/A 75.0
2028 860,202 27,570 3,868 2,861 57,989 N/A N/A 6,470 N/A 72.0
Annual Change
Domestic World price
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand of crude oil
Year (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2014 6.86 10.1 1.46 -0.62 7.78 N/A N/A -0.44 N/A -4.91
2015 -26.8 1.79 -6.22 -3.87 -9.80 N/A N/A -8.18 N/A -47.6
2016 -6.20 -0.03 -1.59 -1.46 -4.12 N/A N/A -3.96 N/A -11.5
2017 31.0 16.6 13.6 9.88 30.2 N/A N/A 35.6 N/A 17.8
2018 18.3 19.0 -0.94 -0.60 -0.63 N/A N/A 1.40 N/A 27.3
2019 -6.29 -1.77 0.45 -0.87 3.00 N/A N/A 3.16 N/A -12.2
2020 -34.0 -37.9 -0.70 -0.66 -1.77 N/A N/A -9.34 N/A -30.8
2021 43.2 49.6 17.8 16.1 30.2 N/A N/A 32.8 N/A 72.6
2022 31.3 26.0 14.4 13.3 23.0 N/A N/A 24.7 N/A 52.5
2023 -4.76 -2.49 1.79 2.13 -0.22 N/A N/A -1.12 N/A -12.9
2024 -2.20 -1.79 3.08 3.31 1.70 N/A N/A 0.92 N/A -6.21
2025 -1.55 -0.88 2.46 2.69 1.14 N/A N/A 0.60 N/A -4.96
2026 -1.26 -0.78 2.89 3.08 1.45 N/A N/A 0.91 N/A -3.86
2027 -1.16 -0.88 3.11 3.37 1.51 N/A N/A 0.98 N/A -3.11
2028 -1.39 -0.52 3.33 3.65 1.51 N/A N/A 0.94 N/A -4.00
Key Ratios
Imports/ Exports/ Revenue per Wages/ Employees per
IVA/Revenue Demand Revenue Employee Revenue estab.
Year (%) (%) (%) ($'000) (%) (Units) Average Wage ($)
2014 2.32 N/A N/A 26,416 0.42 12.7 111,973
2015 3.23 N/A N/A 21,435 0.53 12.2 113,975
2016 3.44 N/A N/A 20,972 0.54 11.9 114,168
2017 3.06 N/A N/A 21,103 0.56 13.6 118,911
2018 3.08 N/A N/A 25,120 0.48 13.7 121,345
2019 3.23 N/A N/A 22,853 0.53 14.0 121,534
2020 3.04 N/A N/A 15,360 0.73 13.9 112,165
2021 3.17 N/A N/A 16,894 0.68 15.3 114,404
2022 3.05 N/A N/A 18,032 0.64 16.5 115,946
2023 3.12 N/A N/A 17,212 0.67 16.1 114,891
2024 3.13 N/A N/A 16,553 0.69 15.9 114,011
2025 3.15 N/A N/A 16,113 0.70 15.7 113,404
2026 3.17 N/A N/A 15,683 0.72 15.5 112,801
2027 3.18 N/A N/A 15,270 0.73 15.3 112,206
2028 3.21 N/A N/A 14,834 0.75 15.0 111,566
Figures are inflation adjusted to 2023
41 IBISWorld.com
Industry Financial Statement

Historical Average
Industry Multiples 2018 2019 2020 2021 3-Year 5-Year 10-Year

EBIT/Revenue 1.8 4.1 5.8 9.9 6.6 5.3 4.7
EBITDA/Revenue 3.5 5.7 7.7 19.6 11.0 8.6 7.3
Leverage Ratio 14.8 8.2 13.0 2.0 7.8 9.3 7.6
Industry Tax Structure 2018 2019 2020 2021 3-Year 5-Year 10-Year
Taxes Paid/Revenue 0.8 2.7 1.0 1.1 1.6 1.6 1.8
Income Statement 2018 2019 2020 2021 3-Year 5-Year 10-Year

Total Revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Business receipts 99.2 99.0 96.8 98.4 98.1 98.3 98.5
Cost of goods 91.1 90.4 84.2 83.9 86.2 87.2 89.0
Gross Profit 8.9 9.6 15.8 16.1 13.8 12.8 11.0
Expenses
Salaries and wages 2.1 2.1 3.2 3.3 2.9 2.7 2.0
Advertising 0.4 1.8 0.6 0.6 1.0 0.7 1.5
Depreciation 0.4 0.5 0.8 0.8 0.7 0.7 0.7
Depletion 0.1 0.0 0.0 2.0 0.7 0.4 0.2
Amortization 1.2 1.1 1.1 6.9 3.0 2.3 1.6
Rent paid 0.8 0.7 0.7 0.8 0.8 0.8 0.6
Repairs 0.6 0.6 1.0 0.5 0.7 0.7 0.7
Bad debts 0.1 0.9 1.9 1.0 1.3 0.9 0.7
Employee benefit programs 0.6 0.6 3.1 5.3 3.0 2.1 1.3
Compensation of officers 1.0 0.9 0.9 19.7 7.2 4.7 2.7
Taxes paid 0.8 2.7 1.0 1.1 1.6 1.6 1.8
Interest Income 0.6 0.5 0.3 0.1 0.3 0.4 0.4
Other Income
Royalties 1.7 1.1 1.4 3.7 2.1 1.6 0.9
Rent Income 1.4 1.3 1.4 0.7 1.1 1.2 1.1
Net Income 0.8 1.1 2.3 2.1 1.8 1.6 1.6
Balance Sheet 2018 2019 2020 2021 3-Year 5-Year 10-Year
Assets
Cash and Equivalents 2.8 2.8 2.7 2.3 2.6 2.9 2.7
Notes and accounts receivable 13.4 14.1 6.9 10.4 10.4 9.3 8.5
Allowance for bad debts 0.1 0.2 1.3 1.0 0.8 0.5 0.7
Inventories 21.3 21.8 17.2 19.4 19.5 18.0 14.7
Other current assets 4.4 5.0 2.1 2.3 3.1 4.4 6.3
Other investments 56.8 55.1 45.4 28.5 43.0 44.6 39.8
Property, Plant and Equipment 32.1 39.1 36.3 48.6 41.3 32.3 21.1
Accumulated depreciation 12.6 15.3 20.7 29.8 22.0 17.7 14.9
Intangible assets (Amortizable) 8.4 7.8 9.0 5.2 7.3 7.8 7.7
Accumulated amortization 1.8 0.9 1.7 2.5 1.7 1.4 0.9
Other assets 20.5 20.5 8.6 7.2 12.1 15.5 18.1
Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Accounts payable 14.5 14.5 5.8 8.7 9.7 11.4 9.1
Liabilities and Net Worth

Mort, notes, and bonds under 1 yr 3.9 5.5 10.3 12.4 9.4 8.0 7.1
Other current liabilities 1.2 1.3 0.7 7.1 3.0 3.7 5.0
Loans from shareholders 16.5 13.7 9.2 6.1 9.7 9.9 10.5
Mort, notes, bonds, 1 yr or more 37.3 43.6 32.2 40.1 38.7 40.0 36.9
Other liabilities 10.0 10.6 6.4 8.4 8.5 8.5 7.8
Total liabilities 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Capital stock 3.3 2.3 6.8 1.3 3.5 3.1 3.5
Additional paid-in capital 54.2 43.5 45.6 19.7 36.3 37.1 36.4
Retained earnings, appropriated 1.3 0.9 1.3 0.7 0.9 0.9 1.2
Retained earnings-unappropriated 10.0 10.6 10.4 22.3 14.5 12.7 10.8
Cost of treasury stock 8.0 5.4 4.8 7.4 5.9 5.3 3.4
Net worth 54.2 50.9 45.9 28.7 41.8 43.1 40.0
42 IBISWorld.com
Liquidity Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Current Ratio 2.3 2.2 2.0 1.3 1.8 1.7 2.1
Quick Ratio 1.2 1.2 1.0 0.6 0.9 0.9 1.3
Sales/Receivables 14.5 15.1 14.5 24.0 17.8 33.3 42.3
Days' Receivables 25.1 24.2 25.2 15.2 21.6 18.7 13.9
Days' Inventory 44.0 41.6 74.6 33.9 50.0 43.5 28.7
Inventory Turnover 8.3 8.8 4.9 10.8 8.1 9.7 19.9
Payables Turnover 12.2 13.2 14.5 24.1 17.3 15.1 51.9
Days' Payables 29.9 27.7 25.1 15.2 22.6 25.9 17.4
Sales/Working Capital 9.5 9.7 4.9 25.0 13.2 -11.4 -0.7
Coverage Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Debt Service Coverage Ratio 3.1 7.1 0.7 2.3 3.4 3.8 4.1
Leverage Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Fixed Assets/Net Worth 1.4 1.7 1.7 3.2 2.2 1.8 1.6
Debt/Net Worth 1.8 2.0 2.2 3.5 2.5 2.5 2.7
Tangible Net Worth 0.5 0.5 0.5 0.3 0.4 0.4 0.4
Operating Ratios 2018 2019 2020 2021 3-Year 5-Year 10-Year

Return on Net Worth, % 6.4 17.0 12.5 86.4 38.6 29.2 36.6
Return on Assets, % 3.4 8.6 5.8 24.8 13.1 10.2 12.2
Sales/Total Assets 1.9 2.1 1.0 2.5 1.9 1.9 2.6
EBITDA/Revenue 3.5 5.7 7.7 19.6 11.0 8.6 7.3
EBIT/Revenue 1.8 4.1 5.8 9.9 6.6 5.3 4.7
Cash Flow & Debt

Service Ratios (% of 2018 2019 2020 2021 3-Year 5-Year 10-Year
sales)
Cash from Trading 7.0 7.7 13.3 20.6 13.9 11.5 10.3
Cash after Operations 0.4 1.1 7.7 -1.4 2.5 2.3 3.0
Net Cash after Operations 2.1 -1.9 9.1 1.7 3.0 2.2 2.0
Debt Service P&I Coverage 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Interest Coverage (Operating
0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash)
Source: IRS SOI Tax Stats; US Census Bureau; IBISWorld
43 IBISWorld.com
Additional Resources
Additional American Petroleum Institute
Resources http://www.api.org
US Energy Information Administration

http://www.eia.gov
US Securities and Exchange Commission

http://www.sec.gov
US Census Bureau
http://www.census.gov
Industry Jargon BULK STATION

A station that holds more than 10,000 gallons of petroleum products, typically for a retailer that then sells them to
end users.
LIQUEFIED PETROLEUM GAS (LPG)

A flammable mixture of hydrocarbon gases used as a fuel; also called GPL, LP gas or autogas.
ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES

An intergovernmental organization of 12 developing countries with the goal of determining the best means of
safeguarding the organization's interests.
PETROLEUM PRODUCTS
Products obtained from processing crude oil, natural gas liquids and blending stocks.
TERMINAL
A bulk storage facility for crude oil and petroleum products.
Glossary BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
44 IBISWorld.com
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
45 IBISWorld.com
Call Preparation Questions

Role Specific Sales & Marketing
Questions
How does your company maintain a competitive edge in such a crowded industry?
Companies in this industry maintain a competitive edge by maintaining proper relationships with customers and
garnering high efficiency.
Are your sales heavily dependent on any one market, major customer or other isolated revenue stream?
Operators in this industry are heavily dependent on sales of petroleum and gasoline. The majority of sales are to
other gasoline wholesalers, who specialize in last-mile delivery and comprise over 70.0% of revenue.
Strategy & Operations
How does the size of your company affect its profitability and growth potential?
While the largest operators in this industry are generally the most profitable, during down years they are also
generally the ones who fare the worst.
How do you manage volatile demand that results from economic conditions or seasonality?
Operators are directly effected by movement in oil prices and production. When oil prices increase operators
generally garner higher revenue, when they fall the opposite occurs.
The COVID-19 (coronavirus) crisis has caused great stress on operators. Both demand for industry products and the
price of gasoline plummeted in response to the crisis, leading to steep declines in revenue.
Technology
How are increased digitalization for businesses and the growing popularity of online shopping affecting your financial
performance?
As operators sell mostly to large industrial clients on a greater scale this has not necessarily effected sales directly.
That said, increasing digitization has forced operators to provide platforms for clients to purchase industry goods
online.
How has your company been able to implement technology into the purchasing process to make buying more
efficient for customers?
Efficiency in the purchasing process is of paramount importance to those operators that would like to find success in
this industry.
Compliance
How does your company ensure all relevant health and safety requirements are met?
Keeping a minimum level of health and safety is of paramount importance to operators in this industry.
If health and safety standards are not met, a company could potentially face fines.
How does your company monitor potential changes to the regulatory environment?
The regulatory environment for oil and gas has a significant effect on industry demand so operators must be weary
of potential regulatory changes.
The new presidential administration is expected to increase the level of regulation on the broader oil and gas
industry, which will likely also impact downstream operators, such as industry operators.
Finance
What immediate financial challenges are you likely to face in the next year?
Potential volatility in the price of oil is a constant challenge that operators in this industry face.
Additionally, companies in the industry have become unattractive given their involvement in fossil fuels, which will
inevitably impact their ability to receive both equity and debt financing.
How has input price volatility affected your purchase costs and selling prices over the past five years?
Falling prices during the period provided increased profits for operators but lowered revenue.
IBISWORLD.COM 46
External Impacts Impact: World price of crude oil

Questions How have volatile fuel prices affected your sales? How will you take advantage of an increase in the world price of
crude oil?
When crude oil prices rise, petroleum product prices also rise, fueling industry revenue growth. However, growth in
crude oil prices also tends to raise industry purchase costs, negatively affecting profit margin.
The COVID-19 (coronavirus) crisis has demonstrated the impacts of sharp price movements on the industry. At the
beginning of the pandemic, prices plummeted, with the front-month contract even turning negative briefly. As a result
of these swings, industry revenue collapsed in 2020, although it is expected to recover in 2021 and 2022.
Impact: World production of oil

How will you plan for an increase in oil production? Do you have the capacity to handle increased energy usage?
High levels of oil production result in a greater volume of petroleum product output, which directly bolsters demand
for wholesale distribution services offered by industry operators.
Since the start of the pandemic, oil production has fallen, but will likely expand as the crisis comes to an end.
Impact: Regulation for the Gasoline & Petroleum Wholesaling industry

How do you ensure that your company complies with federal and local regulations? Have you had issues with
compliance in the past?
The complex nature of the products in this industry, their importance to the US economy and the potential
environmental and safety impacts of spillage or improper blending of chemicals all mean that this industry deals with
substantial federal and state regulation.
The new presidential administration is expected to increase the level of regulations on the industry.
IBISWORLD.COM 47
Internal Issues Issue: Ability to pass on cost increases

Questions How do you pass on cost increases to your customers? Have you had to absorb cost increases in the past?
Since oil and gas costs fluctuate violently, it is imperative for distributors to be able to pass on any increases in the
medium to long term to ensure profitability.
That being said, overall demand for industry products can also fluctuate significantly. This dynamic has been
demonstrated during the pandemic as total vehicle miles driven has plummeted, even though gas prices were low.
Issue: Supply contracts in place for key inputs

Do you have long-term contracts with suppliers of key inputs? How do fluctuating input prices affect these contracts?
Companies in the industry must ensure a supply of the products traded; the establishment of contracts with bulk
terminals is advantageous.
Issue: Having contacts within key markets

Do you have contacts across a range of markets? Are there any other markets you can expand into?
Since direct selling is the major method adopted within this industry, it is imperative that sales staff have good
contacts across a range of markets. The largest market for industry operators is wholesale resellers, who primarily
specialize in last-mile logistics for industry products.
IBISWORLD.COM 48
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INDUSTRY REPORT 42472

Gasoline & Petroleum Wholesaling in the

Grace Wood | January 2023

IBISWorld.com 1-800-330-3772 info@IBISWorld.com

INDUSTRY AT A GLANCE................................ 7 MAJOR COMPANIES...................................... 26

CALL PREPARATION QUESTIONS............... 46

Recent Wholesale prices remain under pressure

Supply chain and manufacturing disruptions in Russia and China

This section last updated January 20, 2023

About This Industry

Major Players Sunshine Gasoline Distributors

Edison Oil Company

Main Activities The primary activities of this industry are:

Lubricating oil and greases

Liquefied petroleum gas

The major products and services in this industry are:

Lubricating oil and greases

RELATED INTERNATIONAL INDUSTRIES

$928.0bn 2.6% 6.9%

Annual Growth Annual Growth Annual Growth

$15.8bn Industry Structure

Annual Growth Annual Growth NEGATIVE IMPACT

Annual Growth Annual Growth Annual Growth

2018–2023 2023–2028 2018–2028 Key Trends

 Growth amid abysmal operating conditions can be attributed

 As crude oil prices stabilize, the industry will likely become

Products & Services Segmentation

Major Players SWOT

Low & Steady Level of Assistance

High Revenue Growth (2005-2023)

Low Outlier Growth

Key External World price of crude oil

Demand from gas stations

World production of oil

Industrial production index

Per capita disposable income

Current Revenue for the Gasoline and Petroleum Wholesaling industry is

Volatile oil prices disrupt wholesalers' performance

Wholesalers get smaller as integrated companies seek higher margins

Environmental awareness reduces consumers' reliance on petroleum

Historical Performance Data

A dip in oil prices will mitigate wholesalers' growth

Competition is set to intensify as substitutes gain traction

Efficiency trends bode poorly for the industry

Performance Outlook Data

The growth in demand for petroleum products is expanding slowly

Technology & Systems

Products & Markets

Gas Stations in the US Refined Petroleum Pipeline Transportation in the US

Auto Parts Stores in the US Tank & Refrigeration Trucking in the US

Gas Stations with Convenience Stores in the US Petroleum Refining in the US

Manufacturing in the US Gasoline & Petroleum Bulk Stations in the US

2nd Tier 2nd Tier

Wholesale Trade in the US Electrical Equipment Manufacturing in the US

Retail Trade in the US Metal Pipe & Tube Manufacturing in the US

Transportation and Warehousing in the US

Long-Distance Freight Trucking in the US

International Airlines in the US

Products & Services