NAICS 4247

Petroleum & Petroleum Products Merchant Wholesalers

Petroleum and petroleum products merchant wholesalers (NAICS 4247) distribute crude oil and refined petroleum products to retail, industrial, and commercial customers.

Published by VantaInsights Research·Methodology·Data Sources· AI-drafted
Built on data from Census Bureau CBP Bureau of Labor Statistics Federal Reserve FRED SEC EDGAR

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 4247 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
102K
US Census CBP · 2023 · NAICS 2017
Establishments
6,213
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$10.8B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$105,894
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$1.9T
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Petroleum and petroleum products merchant wholesalers (NAICS 4247) comprise establishments engaged in the merchant wholesale distribution of crude oil, refined petroleum products, liquefied petroleum gas, and related hydrocarbon products. These wholesalers operate as independent intermediaries between refineries, producers, and retail outlets, service stations, industrial consumers, and other end-users, maintaining inventories and providing logistics, storage, and distribution services. This industry group plays a critical role in the energy supply chain, managing the complex distribution networks that deliver gasoline, diesel, heating oil, jet fuel, and specialty petroleum products to consumers and businesses across the United States.

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Industry Trends

01

Increasing adoption of digital platforms and automated ordering systems to improve efficiency and customer service, with many wholesalers investing in e-commerce capabilities and real-time inventory tracking technologies.

02

Growing emphasis on sustainability and lower-carbon fuel alternatives, including renewable diesel distribution and biodiesel blending as distributors respond to environmental regulations and customer demand.

03

Consolidation among mid-sized wholesalers as larger distributors acquire regional competitors to achieve economies of scale and expand geographic coverage in competitive markets.

04

Investment in infrastructure modernization including improved storage facilities, distribution centers, and supply chain resilience measures to manage price volatility and supply chain disruptions.

05

Enhanced focus on compliance and safety protocols, driven by environmental regulations, occupational safety requirements, and increased liability concerns related to hazardous materials handling.

Specialty Reports Available on Request

2 specialty industriesavailable on request
▾
Petroleum Bulk Stations & Terminals
424710View →
Petroleum & Petroleum Products Merchant Wholesalers (Except Bulk Stations & Terminals)
424720View →

Industries

Browse deeper into the NAICS hierarchy.

424710 reports

Petroleum Bulk Stations & Terminals

424720 reports

Petroleum & Petroleum Products Merchant Wholesalers (Except Bulk Stations & Terminals)

Frequently Asked Questions

What is NAICS 4247? ▾
NAICS 4247 classifies establishments primarily engaged in merchant wholesale distribution of petroleum and petroleum-based products. These businesses purchase petroleum products from refineries and producers, maintain inventory, and distribute them to retailers, service stations, industrial users, and other commercial customers. Merchant wholesalers take title to the products they sell and operate independently from the refineries they supply.
What types of petroleum products do these wholesalers distribute? ▾
Petroleum wholesalers distribute a wide range of products including motor gasoline, diesel fuel, heating oil, jet fuel, liquefied petroleum gas (LPG), lubricants, bunker fuel, and specialty petroleum products. Some wholesalers also handle petrochemical feedstocks and may provide blending services to customize products for specific customer needs.
How do petroleum wholesalers differ from refineries and retailers? ▾
Petroleum refineries convert crude oil into finished products, while wholesalers purchase and distribute these products to intermediate and end customers. Retailers operate service stations and convenience stores that sell directly to consumers. Wholesalers occupy the critical middle position, managing inventory, providing logistics, and serving as the primary distribution channel between refineries and retail outlets.
What factors most impact this industry's profitability? ▾
Profitability is heavily influenced by crude oil prices and petroleum product price volatility, which affect both inventory costs and margins. Distribution efficiency, fuel prices, regulatory compliance costs, inventory management, competitive pricing from other wholesalers, and customer demand fluctuations also significantly impact financial performance.
What are the primary challenges facing petroleum wholesalers? ▾
Major challenges include managing price volatility and inventory risk, complying with environmental and safety regulations, competition from large integrated petroleum companies, logistics and transportation costs, supply chain disruptions, and the need to invest in technology and infrastructure while maintaining competitive margins.

Related Industries

Machinery, Equipment, & Supplies Merchant Wholesalers 4238Farm Product Raw Material Merchant Wholesalers 4245Beer, Wine, & Distilled Alcoholic Beverage Merchant Wholesalers 4248Pipeline Transportation 486Petroleum & Coal Products Manufacturing 324

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