uring the five years to 2016, the Automotive Fuel Retailers industry in China is expected to grow moderately, mainly driven by the rising number of automobiles, the reform of the current pricing mechanism for automotive fuels, intensified competition, lower global crude oil prices and the development of non-fuel businesses. The annualized growth rate for industry revenue is forecast to be 7.9% over the next five years, according to IBISWorld, America’s largest publisher of industry research
Gas station revenue in China is expected to total $173.4 billion by the end of 2011, up 13.5% from 2010, with an annualized growth rate of 16.4% in the past five years, according to IBISWorld.
The industry currently consists of a duopoly of two state-owned oil companies, China Petrochemical Corporation (Sinopec) and China National Petroleum Corporation. The industry is heavily influenced by the vertical integration these companies, which control crude oil mining and the importation of petroleum products and own most of the large refineries in China. These two firms also jointly own over half of the gas stations in China. Sinopec and CNPC gas stations have competitive advantages in fuel supply, funding and technologies.
Despite all this, IBISWorld expects global enterprises and private domestic companies to continue to grow over the next five years and to gradually chip away at the two companies’ market shares over the next five years. |