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- 08 Apr
UK overall retail fuel volumes diminishing but diesel volumes increasing
In a similar way as the US, retailers in the UK are experiencing shrinking demand for retail fuel volumes, as reported by The Financial. Retail sales volumes are down 3.5 billion liters from 2007 to 2012. That represents a 9.3% decrease in the overall UK retail fuel market.
But as the overall retail fuels volume market is shrinking, the product makeup of the market continues to shift in the favor of Diesel. Diesel retail fuel volumes last year represented 49% of the overall market, as compared to 39% in 2007. Diesel retail sales volumes were 14.8 billion liters in 2007, and 16.7 billion liters in 2012, an increase of 12%.
The biggest reason for the UK market decrease is the same as for the US: improved vehicle fuel efficiency. According to a study by the University of Michigan, the average fuel efficiency rating for new vehicles is four miles per gallon higher than in 2008.
Just as in the US, as retail fuels volumes in the UK continue to shrink, and fuels retailers fight for an ever-shrinking size of the fuels volume pie, competition will continue to intensify. In this environment, fuels analysts need to be at the top of their game, and use best in class fuels optimization technology for their fuels price management solution.
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