Fuel Retailing in New Zealand - Industry Market Research Report

Pump it up: External factors have driven up fuel costs, boosting revenue alongside purchase costs

Fuel retailers have faced challenging operating conditions in recent years, with volatility in the world price of crude oil significantly affecting fuel prices, industry revenue and profitability. Retail petrol prices have reflected rising oil prices, with petrol prices across New Zealand rising from 194.3 cents per litre in 2017-18, to around 284.1 cents per litre in 2022-23. This rise comes despite global oil prices falling sharply in the early stages of the COVID-19 pandemic, as demand from the global manufacturing and aviation sectors crashed. Fuel retailing revenue plummeted in 2020-21 as the Central Government (Te Kawanatanga o Aotearoa) introduced restrictions to limit the pandemic's spread. Demand conditions have since recovered, while the Russia-Ukraine conflict has caused oil prices to rise, driving a rebound in industry revenue. Overall, revenue has grown at an annualised 3.7% to an anticipated $11.0 billion over the five years to 2022-23. This includes revenue growth of 18.6% in 2022-23, with profit margins rising to an estimated 4.6%.

Industry operators retail fuels, including petrol, LPG or lubricating oils, typically at a service station. Industry players also retail convenience store goods and provide services, such as car washing, to supplement revenue.

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's key players and their market shares.