Australia fuel retailing market witnessing consumers switch from petrol to diesel

The Australia fuel retailing market is expected to decline in terms of revenue by around 7% in 2012-13 to a value of $32.4 billion. This is suggested to have been caused by a decline in the cost of fuel, and marginally higher retail sales volume. Despite this, the outlook for the next five years up to 2018 is more positive, with key analysts predicting that the industry will grow to a value of $37.9 billion, with sales volume growing 1.4% between 2013 and 2018.

Due to the global economic climate, demand for oil in Australia has slowed, which has lead to a fall in prices. Revenues fell 3.9% year-on-year between 2008 and 2012. Profit in the Australia fuel retail market is suggested to have reached around $759.2 million in 2012, accounting for 0.2% of Australia's GDP.

The volume of petroleum and diesel sold in Australia during the 2012-13 period is expected to e around 15.6 billion litre and 7.9 billion litres respectively. Greater fuel economy is driving motorists in Australia to switch from petrol to diesel as the financial crisis hits consumers. The volume of diesel sold by the fuel retailing market is suggested to have grown 6.1% a year between 2008 and 2012, while during the same period the volume of petrol sold actually decreased by -0.2%.

The last five years have seen supermarket chains grow in importance to the fuel retail industry as oil companies reduce their retail operation to focus on the up stream oil and gas sector which is seen as more profitable. In terms of manpower, the industry in Australia employs over 35,600 people, with wages totalling approximately $1.2 billion. This is despite an increase in mechanisation in the industry, such as 'Pay at the Pump'.

For more information on the Australia fuel retailing market, see the latest research: Australia fuel retailing market

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