Three Big Trends in Fuels Distribution & Marketing

First, the biggest trend impacting the US fuels industry at every level is the long-term decline in gasoline demand. Gasoline demand is expected to drop 30 billion gallons—yes billion. With the average fuel marketer being around 30 million gallons a year, we are looking at the potential demise of 1,000 distributors. The industry, from refining through distribution and on down to the street at retail, has been structured to serve a market that has grown around 1% a year for many decades. A reversal of the gasoline market to one of shrinking demand will remake the entire fuels industry.