EP83: Petroleum retailing - the future is now

Petroleum retailing in Asia and the Middle East faces margin pressure from deregulation, low differentiation and rising competition. In India, pricing deregulation and new entrants are expanding station numbers, reducing throughput and fuel margins. In the UAE and Singapore, regulated prices, high crude costs, limited geography and stagnant demand constrain profitability. As fuel becomes a commodity, retailers must shift from a product-led to a customer-centric, service-oriented model. Growth depends on differentiated value propositions, deeper customer insight and higher non-fuel revenues, which offer superior margins. Opportunities include convenience stores, auto care and ancillary services that increase dwell time and wallet share, supported by attractive site design and upgrades. Scientific site selection, rationalization and security are critical to sustain network profitability. Loyalty programs and data-driven segmentation can strengthen customer retention and tailor offerings. Overall, success requires treating petroleum retailing as both a product and a service business, with non-fuel differentiation at its core.