Jobber (fuel)

A "jobber" in the context of the petroleum industry, specifically fuel distribution, refers to an independent business that purchases refined petroleum products (like gasoline, diesel, and heating oil) from a major oil company or refinery and then resells those products to retail gas stations, commercial consumers, or other end-users.

Jobbers typically own and operate their own bulk storage facilities and delivery trucks, allowing them to distribute fuel independently. They often operate under a branded agreement with a major oil company, allowing them to use the company's logo and participate in their marketing programs. However, they remain independent businesses with their own management and financial control.

The role of a jobber sits between the major oil refiners and the retail level. They handle the logistics of fuel distribution, manage inventory, and provide localized customer service. Jobbers often play a vital role in serving rural or geographically dispersed areas where direct distribution from major oil companies might be less efficient.

Key functions of a fuel jobber include:

• Procurement: Purchasing fuel from refineries or major oil companies.
• Storage: Maintaining bulk storage facilities for fuel.
• Distribution: Transporting fuel to retail stations and other customers.
• Pricing: Setting prices for fuel based on market conditions and contractual obligations.
• Customer Service: Providing support to their retail and commercial customers.
• Marketing: Participating in or running their own marketing programs, often in conjunction with their brand affiliation.

The profitability of a fuel jobber depends on factors such as the wholesale price of fuel, transportation costs, competitive pressures in the local market, and the terms of their agreements with major oil companies and retail stations.