The gas station market - France

Since 2020, the service station market has faced significant disruption due to the COVID-19 pandemic, with a marked drop in fuel demand, with closures resulting in a drop of over 50% in road fuel requirements compared with 2019. The market is undergoing a gradual transition with a growing number of electric vehicle charging stations, largely thanks to local authority initiatives. Supermarket networks are gaining market share, accounting for 62.9% of service stations in France by 2021, reducing the share of traditional networks.

Despite fluctuations in fuel prices, which reached 2 euros per liter in March 2022 due to the conflict between Ukraine and Russia, a trend towards normalization is emerging with the emergence of new sources of supply. New vehicle registrations in France are shifting towards gasoline and alternative energy sources, with gasoline-powered vehicles accounting for 57.9% of new registrations and hybrid and electric engines for the remaininglectrics accounted for 7.5%, underlining the transformation of the French vehicle fleet and the move away from diesel, which now accounts for just 34.1% of new vehicle registrations.

Impact of changing demand and trends on the French service station market

The French service station market has seen significant changes in demand and consumer trends in recent years. Service stations, traditionally a hub for refueling vehicles, have been confronted with a variety of influences, such as global oil prices, socio-political movements like the yellow vest protests, environmental concerns and the unprecedented pandemic of the COVID-19 virus.

In France, there have traditionally been two main networks: oil groups and independents, known as traditional networks, and supermarket networks, which include hypermarkets and supermarkets. The fortunes of the latter have varied according to changes in demand and consumption patterns.

Sales of road fuels in France fell slightly, with a significant drop in diesel volumes, although gasoline volumes increased. Worldwide, North America became the largest market for petroleum products in 2020, followed by Europe. France is the second largest consumer in Europe, but faces market consolidation with a fraction of service stations compared to Italy, Germany and Spain. The year 2019 saw a stabilization of fuel consumption in France, thanks to the parallel increase in registrations of gasoline-powered vehicles, which have demonstrated their ecological and urban transport efficiency compared with diesel. This trend is also reflected in new car registrations, with hybrid and electric vehicles now accounting for a significant proportion.

In terms of traffic, although diesel is still in the majority, the share of petrol engines is increasing due to the negative environmental implications associated with diesel engines. In the landscape of regulatory influences, the introduction of Directive (EU) 2020/262 has put in place a framework for excise duties on energy products, requiring compliance from operators within the French service station market. This compliance is dictated by the quantity distributed, and entails administrative sanctions in the event of infringement.

Against the backdrop of the pandemic, 2020 saw a significant drop in demand for road fuels. Supermarket networks succeeded in increasing their market share, which consolidated to reach around 60-65% in 2021, while traditional networks experienced a decline.

Despite this challenging environment, service stations have been encouraged to diversify, incorporating a wide range of services such as electric charging stations, vehicle rental and retail offerings. The market sees innovation as essential to guard against changing consumer preferences, technological change and other market disruptions.

Fuel price trends also remain a key factor. Retail prices are heavily influenced by volatile crude oil costs, taxes and distributor margins.

Key players shaping the service station landscape

The service station market is a dynamic arena, where well-established oil giants, independent refiners and distribution tycoons rub shoulders. These entities collectively define the contours of the industry, each bringing their own strengths and strategies to bear on the varied needs of motorists and shaping the consumer experience.

Oil groups: Industry behemoths

• Total: A testament to longevity and adaptability, Total is a titan of the petroleum sector, with its vast network of service stations spread across the globe. Beyond fuel distribution, Total emphasizes sustainable practices and the advent of electric vehicles as part of its commitment to the energy transition.
• BP: British Petroleum, better known as BP, combines tradition and innovation. It brings a strong heritage to the market and is recognized for the quality of its petroleum products and services - while enthusiastically exploring energy solutions in tune with the changing environmental landscape.
• Exxon Mobil: Renowned for its scale and operational excellence, Exxon Mobil is a key player in the production and marketing of petroleum fuels. Its brand is synonymous with quality and reliability, enabling it to appeal to a broad base of consumers seeking reliable fuel solutions.
• Shell: A global player, Shell has a strong presence and its service stations provide a one-stop shop for refuelling, retailing and automotive services. Shell's commitment to new energy solutions and customer-oriented services keeps it at the forefront of the industry.

Independent refiners and distributors

• ineos: Independent refiners like Ineos bring a strategic advantage to the market, leveraging flexibility and specialized offerings to attract consumers looking for alternatives to traditional fuel options.
• Pycoty, Dyneff, Thevenin: These independent distributors stand out by focusing on customer service and niche markets. They manage to carve out a niche in the industry, often catering to unique consumer needs that the big chains might overlook.

Supermarket giants: Champions of convenience

• Carrefour, Auchan, Casino: supermarket networks represent the convergence of convenience and accessibility. These retail heavyweights have a strong presence in the fuel retail market, combining everyday shopping with the convenience of refueling. Their competitive fuel prices and strategic locations in shopping complexes reinforce their position among budget- and time-conscious consumers.

Together, these diverse businesses reflect the multiplicity and competitive nature of the service station market.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 23/09/2022

Summary and extracts

List of charts

• Consumption of road fuels
• Breakdown of world demand for petroleum products
• Number of service stations by country in Europe
• Breakdown of European demand for petroleum products
• French service stations
• Breakdown of fuel sales by type of fuel
• Passenger car registrations
• Fuel sales by type
• New passenger car registrations
• Breakdown of new car registrations by energy source
• Traffic in mainland France
• Breakdown of traffic in mainland France by vehicle type
• Impact of Covid-19 on demand for road fuels
• Service station market share
• Distribution of public electric vehicle charging stations
• Fuel price trends at the pump
• Distribution of service stations on freeways and expressways