Petroleum Product Wholesalers

The 1,763 petroleum product wholesalers in the US act as middlemen between refiners/storage terminals and retailers or end users. Major revenue categories include motor gasoline; distillate fuel oil; lubricating oil and greases; jet fuel, naphtha, or kerosene; and residual fuel oil. Wholesalers may have downstream operations and own groups of gas stations. Petroleum product wholesalers service a wide range of customer industries, including gas stations, convenience stores with gas stations, airports, farms, and government fleet operators.

Clean Energy Transition

Consumer and governmental efforts to reduce US dependence on fossil fuels affect demand for petroleum products.

Sensitivity To Economic Conditions

Demand for fuel is sensitive to economic conditions and can drop during periods of uncertainty.

Oct 23, 2026 - Record Diesel Prices

• Record diesel prices are putting pressure on distributors, raising transportation costs and squeezing profit margins, Distribution Strategy Group reported in September. The national average diesel price reached $6.285 per gallon on September 14, up 68.1% from a year earlier. Distributors are responding with fuel surcharges, price increases, hedging contracts, and more efficient delivery operations, but these strategies don't fully offset rapidly rising costs. For distributors of petroleum products, higher diesel prices increase expenses for operating tanker fleets, transporting fuel, and managing inventory. Although wholesalers may benefit from higher fuel sales prices, rapidly changing costs can strain cash flow and reduce margins when customer pricing adjustments lag behind supplier increases. The situation highlights the importance of efficient distribution networks, flexible pricing strategies, and careful management of fuel costs.
• Major oil companies reported sharply higher second-quarter profits as conflict between the US and Iran disrupted shipments through the Strait of Hormuz and pushed crude oil prices above $100 per barrel, the AP reports. Higher crude prices drove increases in gasoline, diesel, and jet fuel prices, boosting revenue across the petroleum supply chain while raising costs for customers. For petroleum product wholesalers, elevated fuel prices can increase sales revenue but also raise inventory carrying costs, working capital requirements, and customer credit risk while increasing price volatility. Big oil's big profits have also intensified political scrutiny, with lawmakers proposing a windfall profits tax on large oil producers that could affect future energy investment and market conditions.
• A Minnesota lawsuit could have significant implications for petroleum products wholesalers nationwide, Energy Marketers of America warns. The Minnesota Pollution Control Agency is attempting to classify a fuel distributor as an "operator" of an underground storage tank system based solely on its access to tank inventory data used for delivery scheduling. If successful, the case could expand environmental liability for wholesalers, making them responsible for underground storage tank compliance, leak detection, maintenance, operator training, and potentially costly cleanup obligations at customer-owned sites, warns EMA. Industry groups argue this would overturn decades of regulatory interpretation and expose distributors to substantial uninsured liabilities for facilities they don’t own or control. The added compliance and insurance costs could be especially burdensome for smaller fuel wholesalers serving multiple retail locations. A ruling in favor of regulators could establish a precedent that increases operating risks and costs for petroleum products wholesalers nationwide.
• Producer prices for petroleum and petroleum products merchant wholesalers hit a new high in September, climbing 19.6% compared to a year ago, after rising 1.7% in the previous September-to-September annual comparison, according to the latest US Bureau of Labor Statistics data. The rise in producer prices reflects much higher petroleum-product prices and stronger wholesale margins following the 2026 Middle East supply disruptions. In September, the average price for regular motor gasoline was $4.36 per gallon; up 7.3% from August and 37.6% from a year ago, according to the Bureau of Transportation Statistics. Employment by the industry shrank 1.6% YoY in August, while the average industry wage at petroleum and petroleum products merchant wholesalers rose 2% over the same period to $34.64, down $0.15 from its peak in April 2025, BLS data show.

Industry size & Structure

The average petroleum product wholesaler operates out of a single location, employs 17 workers, and generates about $406.6 million annually.

• The petroleum product wholesaling industry consists of about 1,765 firms that employ some 29,520 workers and generate $716.9 billion annually.
• The industry is concentrated; the top 50 firms account for 83% of industry revenue.
• Large companies, such as Mansfield Energy, Murphy Oil, and US Venture, may have additional midstream and downstream operations, in addition to wholesale operations.
• Petroleum products wholesalers ("jobbers") supply the majority of fuel sold to gasoline stations. Jobbers also own or act as franchisors for the majority of gas retail outlets in the US.
• Most firms operate within a limited geographical market, and may be constrained by proximity to supply (terminals).