“After last year’s record-breaking winter, oil and propane dealers seemed to catch their breath this past season,” said Joe Ciccarello, CPA, MST, managing partner at Gray, Gray & Gray. “Although the total sales volume of oil and propane were lower due to warmer weather patterns, most dealers reported strong margins thanks to lower product prices. This also helped to slow the pace of oilheat customers who have been converting to natural gas, as oil has regained its price advantage.”
Some of the highlights of the 2016 Gray, Gray & Gray Energy Industry Survey results include:
- 97% of retail energy companies are family-owned businesses, with an average of three generations of experience
- 61% report lower wholesale prices have resulted in stronger margins at the retail level
- 35% of dealers report their customer base increased in the past year, while 39% say their customer list has remained stable – only 26% report losing customers
- One-third (33%) of company owners are interested in acquiring another oil or propane business, while 22% are interested in selling their company
Complete Energy Industry Survey results, including a breakdown by region, are available on Gray, Gray & Gray’s website at www.gggcpas.com, or by calling (781) 407-0300.
Gray, Gray & Gray, LLP is the country’s leading oilheat and energy industry accounting and business advisory firm. Gray, Gray & Gray’s offices are located at 150 Royall Street, Suite 102, Canton, MA.
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Director of Marketing