Fuel Oil & LP Gas Dealers Industry Profile

Companies in this industry sell fuel oil and liquefied petroleum (LP) gas. Major companies include AmeriGas, Ferrellgas, and Star Group (all based in the US), as well as Mitsui & Co (Japan), SHV (Netherlands), and Ultrapar (Brazil).

The US and China are two of the largest consumers of oil globally, with a total of 19.4 million barrels per day (b/d) and 14 million b/d respectively, according to the 2019 data from Statista. The Organization of the Petroleum Exporting Countries (OPEC) crude oil is expected to rise from an average of 25.1 million b/d in the first quarter of 2021 to 25.8 million b/d in the second quarter, according to the US Energy Information Administration (EIA).

The US fuel oil and LP gas dealer (fuel dealer) industry includes about 8,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion. Volatility in the price of crude oil impacts revenue for fuel oil dealers.

COMPETITIVE LANDSCAPE

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 ...