|Last Quarterly Update:||3/27/2017|
|SIC Codes:||5983, 5984|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry sell fuel oil and liquefied petroleum (LP) gas. Major companies include AmeriGas Partners, Ferrellgas Partners, and Star Gas Partners, all based in the US, as well as Japan's Mitsui & Co, Ultrapar Participações of Brazil, and Dutch firm SHV Holdings.
The top countries for global consumption of fuel oil include the US, China, and Japan, according to the 2015 BP Statistical Review of World Energy. In 2014, Chinese consumption growth was the slowest since 1998, yet China still recorded the world's largest increment in primary energy consumption for the 14th consecutive year. Emerging economies, such as Brazil, the Czech Republic, and Egypt, are among the fastest-growing global markets for fuel oil.
The US fuel oil and LP gas dealer (fuel dealer) industry includes about 8,800 companies with combined annual revenue of about $29 billion. Volatility in the price of crude oil impacts revenue for fuel oil dealers.
Residential, commercial, industrial, and agricultural heating needs drive demand. The profitability of individual companies depends on efficient operations, low-cost purchasing, and competitive pricing. Large companies have advantages in purchasing, finance, and distribution. Small companies can compete effectively by serving a local market, offering unique products, or providing special services. Fuel dealers compete with suppliers of other energy sources, including electricity and natural gas. The US fuel dealer industry is fragmented: the top 50 companies account for about 40% of sales.
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