Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Description
This industry comprises establishments primarily engaged in the merchant wholesale distribution of petroleum and petroleum products (except from bulk liquid storage facilities). Illustrative Examples: Gasoline merchant wholesalers (except bulk stations, terminals) Lubricating oil and grease merchant wholesalers (except bulk stations, terminals) Bottled liquid petroleum gas merchant wholesalers Fuel oil merchant wholesalers (except bulk stations, terminals)
Hierarchy
| Code | Title | Description |
|---|---|---|
| 42 | Wholesale Trade 2-digit sector | The Sector as a Whole The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing. The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production. Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships. This sector comprises two main types of wholesalers: merchant wholesalers that sell goods on their own account and agents and brokers that arrange sales and purchases for others generally for a commission or fee. (1) Establishments that sell goods on their own account are known as wholesale merchants, distributors, jobbers, drop shippers, and import/export merchants. Also included as wholesale merchants are sales offices and sales branches (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products, and group purchasing organizations primarily purchasing and selling goods on their own account. Merchant wholesale establishments typically maintain their own warehouse, where they receive and handle goods for their customers. Goods are generally sold without transformation, but may include integral functions, such as sorting, packaging, labeling, and other marketing services. (2) Establishments arranging for the purchase or sale of goods owned by others or purchasing goods, generally on a commission basis are known as business-to-business electronic markets, agents and brokers, commission merchants, import/export agents and brokers, auction companies, group purchasing organizations (acting as agents), and manufacturers' representatives. These establishments operate from offices and generally do not own or handle the goods they sell. Some wholesale establishments may be connected with a single manufacturer and promote and sell the particular manufacturer's products to a wide range of other wholesalers or retailers. Other wholesalers may be connected to a retail chain, or limited number of retail chains, and only provide a variety of products needed by that particular retail operation(s). These wholesalers may obtain the products from a wide range of manufacturers. Still other wholesalers may not take title to the goods, but act as agents and brokers for a commission. Although, in general, wholesaling normally denotes sales in large volumes, durable nonconsumer goods may be sold in single units. Sales of capital or durable nonconsumer goods used in the production of goods and services, such as farm machinery, medium- and heavy-duty trucks, and industrial machinery, are always included in wholesale trade. |
| 424 | Merchant Wholesalers, Nondurable Goods 3-digit subsector | Industries in the Merchant Wholesalers, Nondurable Goods subsector sell nondurable goods to other businesses. Nondurable goods are items generally with a normal life expectancy of less than three years. Nondurable goods merchant wholesale trade establishments are engaged in wholesaling products, such as paper and paper products, chemicals and chemical products, drugs, textiles and textile products, apparel, footwear, groceries, farm products, petroleum and petroleum products, alcoholic beverages, books, magazines, newspapers, flowers and nursery stock, and tobacco products. The detailed industries within the subsector are organized in the classification structure based on the products sold. Agents and brokers primarily engaged in wholesaling nondurable goods, generally on a commission or fee basis, are classified in Subsector 425, Wholesale Trade Agents and Brokers. |
| 4247 | Petroleum and Petroleum Products Merchant Wholesalers 4-digit industry group | This industry group comprises establishments primarily engaged in the merchant wholesale distribution of petroleum and petroleum products, including liquefied petroleum gas. |
| 42472 | Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) 5-digit NAICS industry | See industry description for 424720. |
| 424720 | Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) 6-digit U.S. detail | This industry comprises establishments primarily engaged in the merchant wholesale distribution of petroleum and petroleum products (except from bulk liquid storage facilities). Illustrative Examples: Gasoline merchant wholesalers (except bulk stations, terminals) Lubricating oil and grease merchant wholesalers (except bulk stations, terminals) Bottled liquid petroleum gas merchant wholesalers Fuel oil merchant wholesalers (except bulk stations, terminals) |
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Classification References
- 01Merchant wholesale distribution of crude petroleum and petroleum products from bulk liquid storage facilities--are classified in Industry 424710, Petroleum Bulk Stations and Terminals; and
- 02Fueling aircraft on a contract or fee basis--are classified in Industry 488190, Other Support Activities for Air Transportation.
Index Items
Alternative fuels, blended with petroleum, merchant wholesalers (except bulk stations, terminals)
Asphalt binder merchant wholesalers (except bulk stations, terminals)
Asphalt, liquid, merchant wholesalers (except bulk stations, terminals)
Biodiesel, blended with petroleum, merchant wholesalers (except bulk stations, terminals)
Biofuels, blended with petroleum, merchant wholesalers (except bulk stations, terminals)
Butane gas merchant wholesalers (except bulk stations, terminals)
Crude oil merchant wholesalers (except bulk stations, terminals)
Diesel fuel merchant wholesalers (except bulk stations, terminals)
Ethanol, blended with petroleum, merchant wholesalers (except bulk stations, terminals)
Fuel oil merchant wholesalers (except bulk stations, terminals)
Fuel oil truck jobbers
Fuel, aircraft, merchant wholesalers (except bulk stations, terminals)
Fueling aircraft (except on contract basis), merchant wholesalers
Gasohol merchant wholesalers (except bulk stations, terminals)
Gasoline merchant wholesalers (except bulk stations, terminals)
Kerosene merchant wholesalers (except bulk stations, terminals)
Liquefied petroleum gas (LPG) merchant wholesalers (except bulk stations, terminals)
Lubricating oils and greases merchant wholesalers (except bulk stations, terminals)
Oil, petroleum, merchant wholesalers (except bulk stations, terminals)
Petroleum and petroleum products merchant wholesalers (except bulk stations, terminals)
Petroleum coke merchant wholesalers
Propane merchant wholesalers (except bulk stations, terminals)
How Item Can Help
Manages real-time inventory levels of diverse petroleum products across multiple distribution centers to ensure accurate stock allocation and minimize waste from spoilage.
Orchestrates complex order fulfillment for bulk shipments and retail deliveries by synchronizing inventory data with transportation schedules and vendor restocking plans.
Provides predictive analytics on market demand fluctuations and product pricing trends to optimize purchasing strategies and reduce overall supply chain costs.
External Resources
Census.gov NAICS Detail
Official US Census Bureau definition and scope for NAICS 424720.
National Petroleum & Gas Assn.
Major trade association providing news, advocacy, and resources for oil, gas, and petrochemical wholesalers.
NAICS Code Lookup Page
Official US Census Bureau page detailing the definitions, statistics, and scope of NAICS 424720.
Wholesale Club Directory
Industry directory featuring listings and contact information for commercial wholesale petroleum distributors.
