Fuel Dealers in the US
The Fuel Dealers industry has a low market share concentration. It is made up of several large companies and thousands of small, independent operators that sell liquefied petroleum gas and heating oil. More than one-quarter of the businesses in the industry are nonemploying operations. The largest fuel dealer, AmeriGas Partners LP, accounts for only an estimated 9.1% of industry revenue in 2020, and the four largest companies account for only an estimated 18.0% of revenue. Industry operators primarily sell propane and heating oil.
Ownership structure explained
· AmeriGas Partners LP (AmeriGas) is the country's largest supplier of propane and is a subsidiary of the energy holding company UGI Corporation. AmeriGas primarily sells propane to residential, commercial, industrial, transportation, agricultural and wholesale customers. In addition to distributing propane, the company also sells, installs and services propane equipment and appliances, including tanks and heating systems.
Mergers and aquisitions expand market share for top companies
· In 2017, AmeriGas acquired five independent propane and fuel dealers for an estimated $37,000. The company made similar acquisitions in 2015 and 2016. This signals the company's intention to expand through acquisitions, given the saturated market for propane products. Most recently, in 2018, the company spent more than $10,000 to acquire several retail propane distributors to expand market reach and service provision.
· In August 2018, Ferrellgas Partners sold off several lines of business for $92.0 million.
· In 2018, Star Group acquired five home heating dealers and one motor fuel dealer for $25.2 million.
Large supplier pool drives heavy competition
· The Fuel Dealers industry is extremely competitive. Due to a large number of enterprises, consumers have many options for purchasing propane and heating oil. Fuel dealers compete largely on the price of fuel sold. Other bases of competition include marketing campaigns, the ability to offer and deliver multiple products, service and safety reputation, proximity to a large urban population base and the quality of customer service. Dealers that supply substantial numbers of nearby clients can make better use of fixed infrastructure, such as delivery vehicles.
This industry sells heating oil, propane and other fuels directly to end users. Related companies also deliver heating oil, propane and other fuels, such as autogas and kerosene, to domestic and commercial premises.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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