Petroleum Product Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,800 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.
Industry size & Structure
The average petroleum product wholesaler operates out of a single location, employs 18 workers, and generates about $320 million annually.
- The petroleum product wholesaling industry consists of about 1,800 firms that employ about 32,000 workers and generate $575 billion annually.
- The industry is concentrated; the top 50 firms account for 87% 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).
Industry Forecast
Petroleum Product Wholesalers Industry Growth
Recent Developments
Feb 23, 2025 - Falling Sales and Prices
- Producer prices for petroleum and petroleum products merchant wholesalers fell 1.9% in December compared to a year ago after rising 5% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by the industry was unchanged year over year in December, while average wages at petroleum product wholesalers rose 7.7% over the same period to $33.25 per hour, easing from their peak in November, BLS data show. Sales for distributors of petroleum products slumped 18.6% YoY in November and were down 10.6% compared to October, extending their sharp decline from their peak in June 2022, Census Bureau data shows.
- President Trump has moved to pull the plug on the National Electric Vehicle Infrastructure program (NEVI), his predecessor’s initiative to build a nationwide network of EV charging stations, Politico reports. In February, Trump instructed states not to spend federal funds previously allocated to them under the program. In a letter to state transportation directors, the Federal Highway Administration said that it was scrapping guidance issued in 2023 implementing the NEVI program. However, the letter says states will be able to receive reimbursements for “existing obligations” to design and build stations “in order to not disrupt current financial commitments.” Whether Trump can choose not to spend funds allocated by congress is likely to face legal challenges. Still, Trump's move to block future EV charging station construction and his pro fossil fuels policies, brightens the outlook for suppliers of traditional motor fuels.
- Global demand for crude oil is expected to weaken in 2025 dragging crude prices down with it, The Wall Street Journal reported in December. A survey of analysts compiled by WSJ showed Brent crude is expected to average $71.57 a barrel in 2025, while West Texas Intermediate is seen at $67.44 a barrel. By comparison, in a November survey the analysts had forecast the benchmarks at $74.44 and $69.67 a barrel, respectively. “The strengthening dollar, uncertainties surrounding global demand, and the ongoing supply constraints imposed by OPEC+ continue to influence investors,” Quasar Elizundia, research strategist at broker Pepperstone, told WSJ. Planned production hikes by OPEC+ – put on hold due to demand concerns and weak prices – haven't eased fears of an oversupplied market. According to the International Energy Agency, the oil market still faces a surplus of 950,000 barrels a day in 2025, WSJ reports.
- According to the EIA’s 2024 Refinery Capacity Report, which measures changes in US refining capacity in effect as of January 1, 2024, US refining capacity increased for the second time since the pandemic. US operable atmospheric crude oil distillation capacity, the primary measure of refinery capacity, totaled 18.4 million barrels per calendar day (b/cd) at the start of 2024, up 2% from the start of 2023. The three largest US refiners — Marathon, Valero, and ExxonMobil — all reported increases in refining capacity at the start of 2024 compared with 2023. Additions to capacity over the past decade reflect expansions to existing facilities, reactivation of previously decommissioned units, or the addition of relatively small facilities. Notable additions include ExxonMobil’s completion of a major refinery capacity addition in Beaumont, Texas, in March 2023, boosting the facility’s total crude oil distillation capacity from 369,000 b/cd to 609,000 b/cd.
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