Welcome back to Industry Shifters.

Today we are exploring the fascinating world of fuel retailing.

Could automated fuelling revolutionise Australian petrol stations?

Let’s find out!

Brought to you by Dead Pig Publishing

As an investor, you’ll spend at least 700 hours of your life looking at your portfolio.

Spend 4 learning how to do it well.

• Permanently change how you view investing and stock portfolios, and learn how to approach the stock market with true confidence.

• Learn how investment professionals build a portfolio, understand its direction, and evaluate how it has performed.

Check out now!

Automated Fuelling

Australia is witnessing the rise of automated fuelling technology in petrol stations as a way to streamline and modernise the refuelling process. 

This technology involves robotic systems that can refuel vehicles without human intervention, reducing the risk of human error and potential spills. 

These systems typically use sensors and cameras to identify vehicles, open fuel caps, and insert the nozzle into the tank. Additionally, automated payment systems and loyalty programs are being integrated into these stations, streamlining the entire fuelling process. 

While still in its early stages of adoption, automated fuelling could reshape the way Australians refuel their vehicles, offering convenience and safety benefits.

Potential Impact

The market size of Australia’s fuel retailing industry is $48.4 billion AUD in 2024.

Provided automated fuelling is able to be effectively implemented by petrol stations and continues to grow in popularity:

In a low growth scenario, where petrol stations with automated fuelling only come to account for 5% of this industry over the next five years, the market for automated fuelling petrol stations would be worth about $2.42 billion AUD by 2030.

In a high growth scenario, where petrol stations with automated fuelling come to account for 10% of this industry over the next five years, the market for automated fuelling petrol stations could be worth as much as $4.84 billion AUD by 2030.

Why this WILL be disruptive:

• Convenience and Efficiency: Automated fueling offers greater convenience by eliminating the need for manual payment, reducing wait times, and enabling 24/7 operation without staff. This aligns with the growing demand for fast, contactless services, similar to app-based experiences like Uber and food delivery services.

• Cost Reduction: Automation lowers labour costs by reducing the need for staff and improving operational efficiency. With fewer employees required, operators can focus on expanding services like electric vehicle (EV) charging, diversifying their offerings and improving margins.

• Adaptation to Consumer Trends: With growing electric vehicle adoption and demand for sustainable fuel options, automated fuelling can integrate with EV charging stations, helping traditional fuel retailers future-proof their business by offering both petrol and electric charging at the same locations.

Why this WON’T be disruptive:

• High Initial Investment and Implementation Costs: The transition to automated fueling systems requires significant upfront investment in infrastructure, including new pumps, sensors, payment systems, and AI technologies. This high cost could be a financial barrier, especially for smaller, independent operators.

• Regulatory and Safety Concerns: The petrol station industry is highly regulated, particularly regarding safety standards for fuel dispensing and storage. Automation could face challenges in meeting these regulations, and malfunctions or incidents could lead to legal liabilities and safety risks.

• Transition to Electric Vehicles: The increasing adoption of electric vehicles may reduce the long-term viability of investments in automated petroleum fuelling systems, with projections suggesting that 60-80% of service stations could be unprofitable by 2035, diminishing the attractiveness of such investments.