Saudi Arabia Fuel Station Market Report and Forecast 2024-2032

Saudi Arabia Fuel Station Market Outlook

The Saudi Arabia fuel station market size is projected to grow at a CAGR of 7.5% between 2024 and 2032. The expansion of the market can be attributed to the growing population and the rapidly expanding automotive sector.

Key Takeaways

• Saudi Arabia has a robust fuel retail network, with a total of 8,516 gas stations in the Kingdom.

• Riyadh, the capital and the largest city  with a high urban population has 1,282 stations, the highest in the kingdom.

• Saudi Arabia increased its total liquid fuel production from 10.8 million barrels per day (b/d) in 2021 to 12.1 million b/d in 2022, representing a 12% growth.

Fuel stations, also known as gas stations or petrol stations, are facilities where vehicles can refuel with gasoline (petrol) or diesel. They typically offer other services such as convenience stores, car washes, and sometimes facilities for vehicle maintenance. Fuel stations play a crucial role in providing fuel to vehicles, keeping them operational and facilitating transportation.

One of the major factors propelling Saudi Arabia fuel station market growth is the country's expanding economy and increasing population. As economic activities intensify and the standard of living rises, there is a corresponding surge in vehicular traffic, thereby escalating the demand for fuel. This trend is anticipated to catalyse the expansion and installation of new fuel stations across the nation to meet the growing consumer demand.

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Key Trends and Developments

Robust economic development; rising demand for oil; expansion of the automotive sector; and government initiatives towards digital infrastructure development are influencing the market growth

Mar 10th 2024

Authorities shut down 39 fuel stations in 19 cities across the Kingdom due to fuel tampering issues during an inspection raid. The inspection was carried out by the officials of the Permanent Executive Committee for Fuel Stations and Service Centers and such regulatory actions are expected to bolster the Saudi Arabia fuel station market growth.

Apr 23rd 2024

Saudi Arabia implemented several plans to upgrade and modernise its digital infrastructure. Following these plans, the Kingdom was introduced to Eaglestar high-tech fuel dispensers installed with touch screens, digital payment options and real-time monitoring.

Sep 18th 2023

A key Saudi Arabia mobility solutions player, Petromin Corporation KSA, announced a partnership plan with Hindustan Petroleum Corporation Limited (HPCL) for USD 700 million for the development of fuel stations, vehicle service workshops, and EV charging stations.

Jun 28th 2023

Shell, a British multinational oil and gas company, signed an agreement with Asyad Holding Group for the establishment of Shell-branded fuel stations in Riyadh. This decision was made in line with the objectives outlined in Vision 2030.

Population growth and economic upsurge

The Saudi Arabian fuel station market is poised for growth, driven by population expansion and economic development, leading to increased demand for fuel and subsequent station installations.

Increasing demand and production of oil

While the government of Saudi Arabia is reducing its dependency on oil, it is still the most prevalent energy source. With vast hydrocarbon reserves, constant demand, and a prominent role in global oil production, the market is expected to develop significantly during the forecast period.

Growing infrastructure investment and expanding connectivity

Increasing investments in fuel infrastructure, particularly in rural areas, to enhance the connectivity network is expected to propel the market growth. Foreign investment interest further boosts the prospects of the development of the market.

Rising Automotive Sales in the Country

The automotive market in Saudi Arabia is anticipated to experience significant growth during the forecast period, attributed to the Vision 2030 programme facilitating domestic manufacturing, the adoption of new technologies, and increased investments in the automotive sector. These factors, in turn, enhance the opportunities for the market growth as the demand for fuel increases.

Saudi Arabia Fuel Station Market Trends

The development of digital infrastructure has been one of the most crucial factors aiding the growth of the market. The government has initiated various plans, including Vision 2030, which put technology at the core of development. In a significant push towards modernising its national infrastructure, the Saudi government has outlined a forward-thinking initiative to bolster the country’s digital landscape. This ambitious plan includes a commitment to allocate annually 2.5% of its Gross Domestic Product  (GDP) towards research, development, and innovation by the year 2040.

Increasing foreign investments are an additional factor aiding the Saudi Arabia fuel station market expansion. The government has launched and initiated some innovative projects, such as the NEOM, a futuristic megacity, which will contain a 170 km linear city known as the Line.

With various steps taken to attract foreign direct investments (FDI ), Saudi Arabia has received USD 19 billion in FDIs in 2021, which is a major increase from USD 5 billion in 2011.

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Market Segmentation

“Saudi Arabia Fuel Station Market Report  and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Fuel Type

• Petrol

• Diesel

• Gas

• Others

Market Breakup by End-Use

• Road Transport Vehicle

• Air Transport Vehicle

• Water Transport Vehicle

Petrol is likely to account for a major portion of the Saudi Arabia fuel station market share in the forecast period

With 17 per cent of the world’s total petroleum reserves being in Saudi Arabia, it ranks as the world’s largest exporter of petroleum. The availability of the fuel in such large amounts has enabled it to maintain a strong position in the market.

Furthermore, the increasing emphasis on the development of road connectivity to attract more international tourists is expected to bolster the development of the market. For instance, In January 2022, Khalid al-Falih, Saudi Arabia’s Minister of Investment, unveiled plans to construct a comprehensive rail network spanning 8,000 kilometers (approximately 4,970 miles) throughout the nation. This initiative is part of a broader strategy to enhance transportation infrastructure and connectivity across Saudi Arabia.

Increasing air travel and development of airports is expected to propel the Saudi Arabia fuel station market growth

The Kingdom of Saudi Arabia has introduced its aim to develop the aviation sector significantly by 2030. For aviation innovation , the Kingdom has included targets such as aiming to triple its annual passenger numbers to 330 million by 2030. The nation also plans to enhance its global connectivity by increasing the number of destinations served from its 29 airports to over 250. Furthermore, there is a strategic focus on expanding air freight capabilities, with a goal to handle 4.5 million tons of cargo annually by the end of the decade. These objectives are set to surpass the average global growth rates in the aviation sector, positioning Saudi Arabia as a leading player on the international stage.

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Saudi Arabia Fuel Station Market Competitive Landscape

Major players in the Saudi Arabia fuel station market are increasingly expanding their presence with the installation of advanced fuel stations:

TotalEnergies SE

TotalEnergies SE was established in 1924 and is headquartered in Paris, France. As a significant player in the global energy sector, TotalEnergies has evolved through a history rich in innovation and expansion. Originally founded as Compagnie Française des Pétroles, the company has grown to operate in various segments of the energy sector, including oil and gas exploration, production, and refining.

ALDREES Petroleum & Transport Services Company

ALDREES Petroleum & Transport Services Company was founded in 1957 and is based in Riyadh, Saudi Arabia. ALDREES has developed a robust presence in the energy and transport sectors within the Middle East. The company specialises in the distribution of petroleum products and offers extensive transport services.

Petromin Corporation

Petromin Corporation, established in 1968, operates from Jeddah, Saudi Arabia. The company has a strong focus on the automotive sector, providing high-quality lubricants and automotive services. Petromin is renowned for its comprehensive range of products that include motor oils, greases, and other specialised fluids.

ENOC Company

Emirates National Oil Company (ENOC) is a government-owned corporation established in 1993 and headquartered in Dubai, the UAE. It operates as a diversified energy group involved in the oil, gas, and coal sectors, including both upstream and downstream sectors. ENOC’s operations span multiple segments of the sector, such as refining, lubricants, oil and gas storage, aviation, and retail, with initiatives in digital ventures like automotive refuelling services and online vehicle insurance.

Other key players in the Saudi Arabia fuel station market are Wafi Energy Company, ADNOC Distribution, Saudi Automotive Services Co (SASCO), Tas’Helat Marketing Company, Fuel Integrated Limited (Fuel Way), Al-Atoz Petroleum Services Company, and Liter Group, among others.

Companies in the Saudi Arabia fuel station market are implementing several strategic approaches. Expansion efforts are driven by the increasing demand for fuel, attributed to population growth and economic development. Additionally, companies are investing in modernising their facilities and enhancing service offerings to improve customer experience. There is also a noticeable trend towards incorporating advanced technologies for operational efficiency and diversifying services to include convenience stores and additional amenities at station sites, catering to broader consumer needs.

Key Highlights of the Report

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Saudi Arabia Fuel Station Market Report Snapshots

Saudi Arabia Fuel Station Market Size

Saudi Arabia Fuel Station Market Trends

Saudi Arabia Fuel Station Companies