Introduction

Since the launch of the Shell Optimax brand in 2001, the use of premium fuels has grown and they now account for a significant part of European fuel sales in selected markets. Fuel retailers are interested in differentiated fuel offerings. This brief examines the penetration of premium petrol and diesel in key European markets and reviews the major premium fuel providers.

Scope

An overview of the leading premium fuel brands and their availability, both in terms of site numbers and as a proportion of total company sites. Premium fuel penetration by market, in volume terms and as a proportion of total petrol and diesel sales. Information on the main promotional activities and marketing campaigns of the key premium fuel retailers. Predictions on the penetration of premium petrol and diesel volumes across selected European fuel markets to 2010.

Highlights

Although most major oil companies in Europe have a premium fuel offering, the proportion of their service stations selling premium fuel varies. Shell's V-Power petrol is available at 82% of Shell service stations across 15 European markets whereas Agip's BluSuper premium petrol is available at under half of its sites in France and Italy. Oil companies have led focused marketing campaigns to encourage the consumption of premium fuels. Marketers do not use the same message for premium petrol and premium diesel. 'Environmental protection' is the core marketing message of premium diesel promotions whilst 'improved engine care' is the core marketing message of premium petrol promotions. The penetration of premium fuels varies greatly by market. Luxembourg has the highest penetration rate in Europe with premium petrol and diesel accounting for over 10% of total fuel volume sales. Ireland has one of the lowest penetration rate with premium fuels accounting for less than 1% of total fuel sales.

Reasons to Purchase

Measure the availability of premium fuel brands across Europe, both in terms of total site numbers and proportion of company sites. Uncover the core marketing messages and channels used by retailers to promote premium fuels. Learn the extent to which premium petrol and diesel have penetrated the European motor fuel market and relative consumption by market.

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
All of the major fuel retailers have launched a premium fuel offering 2
Shell has been active in the premium fuels market since 2001 2
Agip launched its premium BluDiesel in Italy in 2002 3
BP started selling premium petrol and diesel in Europe in 2003 4
Total Excellium was launched in France in 2005 5
Across Europe, premium fuels have achieved mixed penetration rates 6
Premium petrol and diesel account for the highest proportions of fuel sales in Portugal and Spain 6
Portugal is the only market where premium fuels account for over 10% of fuel sales 7
In Spain, premium petrol and diesel also account for a substantial proportion of fuel sales 8
The penetration of premium petrol in the Netherlands is the second highest of the markets covered 9
Premium fuels have made average penetration into the UK motor fuel market 10
In France, both premium petrol and premium diesel have achieved limited penetration in the motor fuel market 11
Of the markets covered, premium fuels have achieved the lowest penetration in Ireland 13
The major premium fuel retailers have all launched large marketing campaigns 14
'Improved engine care' is the core marketing message of premium petrol promotions 14
'Environmental protection' is the core marketing message of premium diesel promotions 15
Shell seeks to differentiate the V-Power brand by focusing on movement 16
BP's Ultimate brand is aimed at drivers who have a keen, technical interest in cars 17
Total has focused the core of its marketing campaign on fuel efficiency 18
APPENDIX 19
Definitions 19
Further Reading 19
Notes 19
Ask the Analyst 19
Disclaimer 19
List of Figures
Figure 1: Shell's premium V-Power fuel is available in 16 European markets 2
Figure 2: Agip premium fuels are available in three of its 11 European markets 3
Figure 3: Premium fuels are available at almost all of BP's service stations 4
Figure 4: Total premium fuels are available at a minority of its sites 5
Figure 5: In Portugal, premium petrol and premium diesel sales account for similar proportions of overall petrol and diesel volumes 6
Figure 6: In 2006, 785 million liters of premium petrol and diesel were sold in Portugal 7
Figure 7: Premium diesel outsells premium petrol by almost three liters to one 8
Figure 8: In the Netherlands, around 80% more premium petrol is sold than premium diesel 9
Figure 9: Premium petrol and diesel account for around 5% of fuel volume sales 10
Figure 10: In France, premium diesel accounts for a higher proportion of sales than premium petrol 11
Figure 11: In Italy, premium diesel outsells premium petrol by one liter to four 12
Figure 12: Premium petrol and diesel account for a small fraction of the Irish market 13
Figure 13: 35% of respondents cited 'improved engine care' as their main marketing message for premium petrol 14
Figure 14: 40% of respondents cited 'environmental protection' as their main marketing message for premium diesel 15