Industry Analysis & Industry Trends
Though growth is on the horizon for gasoline and petroleum wholesalers, firms will continue to depend on trends in oil prices, which are vulnerable to shocks. While industry revenue will benefit from higher prices due to increased demand for crude oil, profit margins will lag behind, forcing some wholesalers to consolidate to stay afloat. Furthermore, the growing trend toward more fuel-efficient vehicles will dampen demand for gasoline and petroleum... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Gasoline and Petroleum Wholesaling industry are moderate. Operators need detailed knowledge of relevant federal and state government regulations to ensure that they meet the required standards. The knowledge-intensive nature of the industry makes it difficult for newcomers. In addition, the industry's substantial number of players and limited access to existing infrastructure make it difficult for a new entrant to carve out space in the market, especially since the market size is shrinking. Additionally, companies wishing to enter the industry must face incumbent companies possessing strong brands and existing relationships with retail and industrial customers.
Return on capital investment may not be sufficient to attract newcomers... purchase to read more