Challenges and Trends in the Gas Station Market: the Strategic Role of M&A Operations

Brazil currently has more than 44,000 fuel stations, according to the National Petroleum, Natural Gas and Biofuels Agency (ANP). Most of the Posts are concentrated in the Southeast region (36.8%), followed by the Northeast region (27.3%).

The market is concentrated in 4 main distributors: Vibra, Ipiranga, Raízen and Ale. These Distributors account for more than 43% of the distribution of Fuels in the country.

In the last decade, the number of gas stations in Brazil showed a Compound Annual Growth Rate (CAGR) of approximately 1.3%.

‍

According to the Energy Research Company (EPE), Fuel Demand in Brazil is expected to grow 1.4% in 2025 and 1.9% in 2026. These values are in line with the historical average growth in the number of gas stations in the country.

Despite the growth prospects for this market in the coming years, the Sector and its respective Players face a series of challenges, which prevent more marked growth. According to Metanet, among the challenges faced by the Sector are:

Financial Management: Financial Management is one of the most important points in the administration of a company. This involves analyzing the current financial situation, controlling cash in cash, fixed and variable expenses, payroll, suppliers, and maintaining a healthy cash flow. Many Brazilian Offices still have poor Financial Control, which makes it difficult to manage the business, in addition to worsening the Profitability of the Post.

Tax and Accounting Challenges: The Sector still has many “Outside” sales, without the issuance of an Invoice, in addition to other inadequate accounting practices. In addition, the Brazilian fiscal scenario is complex and constantly changing. It is essential for the Manager to master these points for better tax management, in addition to wisely choosing the best Tax Regime for your company: Real Profit or Presumed Profit.

Pricing: Establishing the Selling Price of Fuel is a sensitive and complex task. It is essential to analyze the Cost at refineries, the tax burden and the Profit Margin of the points of sale, in addition to understanding the behavior and financial capacity of consumers. It is also important to avoid price disputes that harm the market and to always seek a balance that is fair, both for the customer and for the viability of the business.

Technology and Automation: although several companies are developing Automation and Management solutions for this market, the Sector still lacks Technology, maintaining some archaic procedures, which do not contribute to greater operational efficiency, increasing Costs and reducing Profitability.

All these difficulties presented by the Sector generate an operational inefficiency that jeopardizes a sharper growth of this segment and its respective companies.

Inorganic expansion in the Sector

Even with several challenges, Players In this Market they are carrying out inorganic Mergers and Acquisitions movements to expand their Market Share. Below are some transactions that took place in the Sector in recent years.

‍

From the table above, it can be seen that the main Brazilian Post Networks carried out Mergers and Acquisitions operations at different times, with different economic contexts. This keeps the Gas Station Sector very hot in M&A processes, and these Networks carry out operations of various sizes, ranging from a few million to billions of reais.

In addition, we constantly observe Mergers and Acquisitions processes between smaller Networks, with the purchase and sale of few or just one Fuel Station.

Currently, 47% of Brazilian Posts are White Flag Posts. This shows how much this market is still pulverized in Gas Station Networks. To achieve more Market Share, the Players in this Sector they need to continue carrying out Mergers and Acquisitions movements, which should continue to keep the Sector warm in terms of M&As.

Conclusion:

Faced with a challenging scenario, but at the same time full of opportunities, the Gas Station Sector in Brazil continues to undergo constant transformation. The high fragmentation of the Market, with almost half of the Offices being White Flag Offices, added to the growing need for professionalization, automation and gain in scale, creates an environment suitable for Mergers and Acquisitions. For companies that want to expand their Market Share, to increase competitiveness and to face the operational and regulatory complexities of the sector, having a specialized M&A Advisor makes all the difference.

Transaction experience in the Fuel sector is essential to understand the specificities of the business, assess regulatory risks, identify synergies, and conduct strategic processes in a structured, agile and secure manner. FC Partners has a consolidated track record in this market, having advised various M&A transactions involving Post Networks, whether large or regional and family businesses. Our expertise allows us to support our clients at every stage of the transaction, adding real value to the business and contributing to more assertive decisions in a constantly evolving sector.

‍