Russian fuel market consumption to grow up to 4% over 10 years

MOSCOW. May 14 (Interfax) - Russia's fuel market consumption will grow within a range of 4% over the next decade, Director of Regional Sales at Gazprom Neft Dmitry Shepelsky said in an interview with Interfax.

Shepelsky characterized the Russian fuel market with three key descriptors - mature, competitive and growing. "Over the past 10 years, it has demonstrated moderate growth - not explosive or volatile, but very gradual due to steadily increasing demand for petroleum products. Despite developing fuel alternatives like gas and electricity, industry participants and experts unanimously forecast that domestic consumption will grow within 4% over the next 10 years," Shepelsky said.

The future of fuel retail lies in enhancing comprehensive customer offerings. Fuel quality, modern services, cafe and store assortments, and alternative refueling options are becoming key competitive factors. Customers want to fill up with only the best gasoline and access a full range of services at fueling stations, and this is the direction stations will develop in, he said.

However, similar to grocery retail, fuel retail has seen consolidation trends over the past 10-15 years, he said. "Both large chains and regional stations see this as an opportunity to improve efficiency and resilience. But this trend isn't universal. Major independent networks continue to thrive independently - they have their own customer base, so we don't expect them to merge with oil companies in the near future," he said.

Smaller operators with just a few stations, meanwhile, increasingly opt for franchise partnerships with vertically integrated oil companies. Operating under an established brand with ready-made services provides a competitive edge for small businesses, he said.