Fuel Oil & LP Gas Dealers

Fuel Oil & LP Gas Dealers

Brief Excerpt from Industry Overview Chapter:

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).

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 companies account for about 40% of sales.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of companies in the industry include LP gas, which accounts for about 40% of the industry revenue. This is followed by products that include No.2 distillate fuel oil (35%) and automotive fuels (10%). Other products include automotive fuels, diesel fuel, as well as maintenance and repair services for home operation. LP gas dealers may rent storage tanks to customers or have portable tank exchanges. Companies may also sell, install, or service heating equipment.