Saudi Arabia Fuel Station Market

Saudi Arabia Fuel Station Market Size and Share:

The Saudi Arabia fuel station market size was valued at USD 846.40 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 1108.57 Million by 2033, exhibiting a CAGR of 3.00% during 2025-2033. Northern and Central region currently dominates the market, holding a significant market share of over 45.2% in 2024. The rising vehicle ownership, expanding road infrastructure, increased domestic travel, rapid urbanization, growing disposable income, government initiatives to modernize service stations, energy diversification goals, economic diversification under Vision 2030, and strong investments in transport and mobility sectors are some of the major factors augmenting the Saudi Arabia fuel station market share.

The market is driven by the rising investments in transportation and logistics infrastructure, which are accelerating the construction of new highways and transit corridors. These developments are directly increasing demand for expanded fueling infrastructure to support growing vehicle movement across the country. A key example of this momentum is the government’s plan to invest SR10 Billion (about USD 2.67 Billion) in establishing 18 new logistics zones, an initiative expected to significantly boost traffic flow and freight activity, further reinforcing the need for well-distributed and modern fuel stations. Moreover, rising disposable incomes and vehicle ownership rates are supporting fuel consumption growth. Furthermore, the government’s Vision 2030 initiative, which includes privatization of fuel distribution and liberalization of the energy sector, is attracting private sector investments into the market. Additionally, the integration of convenience stores, car washes, and fast-food outlets with fuel stations is enhancing consumer experience and increasing footfall.

Apart from this, the growing emphasis on operational efficiency and integration of digital technologies is enhancing Saudi Arabia fuel station market outlook. This shift is evident in the increasing reliance on electronic payment systems, which are streamlining transaction processes and improving customer convenience. In line with this, industry reports show that the share of retail consumer electronic payments climbed to 70% of total retail payments in 2023, up from 62% in 2022. These trends reflect a broader modernization wave across the kingdom, aligning with national goals to enhance service quality and digitize infrastructure. The inflow of foreign players and joint ventures is also increasing competition and innovation within the market. Also, favorable regulatory reforms and streamlined licensing processes are further supporting the establishment and expansion of new fuel stations throughout the country.

Saudi Arabia Fuel Station Market Trends:

Rising Vehicle Ownership and Expanding Private Mobility

Saudi Arabia is experiencing consistent growth in vehicle ownership, driven by population increase, income growth, and greater accessibility to vehicle financing. The expansion in vehicle ownership also contributes to an increased Saudi Arabia fuel station market demand. According to industry reports, approximately 60% of Saudi Arabia’s population is under the age of 30, contributing to a young, aspirational demographic with rising disposable incomes. As the middle class expands, so does the demand for personal mobility, leading to increased vehicle ownership across the Kingdom. This demographic shift is directly influencing the fuel station market, as a larger number of privately owned vehicles requires a broader and more efficient fueling infrastructure. Apart from this, the entry of international automotive brands, coupled with government support for automotive manufacturing, broadens consumer access to private vehicles. This growth is directly boosting demand for fuel distribution infrastructure. As more vehicles take to the roads, the need for well-located, easily accessible, and efficiently managed fuel stations has become increasingly critical.

Rapid Urbanization and Infrastructure Development

The rapid urban expansion across Saudi Arabia is accelerating due to internal migration, housing projects, and economic diversification, which is positively impacting the Saudi Arabia fuel station market growth. According to industry reports, the population of Saudi Arabia is growing at a yearly rate of 1.78% as of 2025. Moreover, 92.12% of the population lives in urban areas, equating to 31,842,626 individuals. These urban centers are experiencing increased traffic congestion, further driving the need for accessible and well-equipped fuel stations. In addition to this, new transport corridors and road networks are encouraging the development of fuel stations in areas previously under-served. The need for stations that support longer commutes, with additional offerings such as convenience stores, food outlets, and rest zones, are becoming more pronounced. The urban planning model is shifting toward integrated service nodes, where fuel stations are designed as part of broader mixed-use developments, supporting both residents and transit traffic. These dynamics are reinforcing the strategic role of fuel stations in urban mobility ecosystems.

Modernization of Fuel Stations

A significant Saudi Arabia fuel station market trend is the shift towards modernization, driven by consumer expectations and growing regulatory scrutiny. The current regulatory environment has revealed significant gaps in compliance, with an industry report stating that 440 out of 1,219 petrol stations along Saudi highways failed to meet operational and safety standards. This shortfall highlights the pressing need for a cohesive and transparent regulatory framework aimed at improving service quality and infrastructure reliability across the sector. In response to these challenges, fuel station operators are investing in technology upgrades and infrastructure enhancements to meet both consumer demands and regulatory benchmarks. Traditional stations are being phased out or overhauled in favor of modern formats that prioritize automation, safety, and convenience. Newer facilities are incorporating features such as automated fuel dispensers, integrated digital payment systems, real-time price displays, high-resolution surveillance, and data-driven tools to monitor operations and customer flow. These developments not only streamline station management and reduce labor dependency but also improve service consistency, paving the way for a more efficient and customer-centric fueling ecosystem.

Saudi Arabia Fuel Station Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia fuel station market, along with forecasts at the regional levels from 2025-2033. The market has been categorized based on fuel type and end use.

Analysis by Fuel Type:

• Petrol
• Diesel
• Gas

Petrol leads the market with around 49.8% of market share in 2024, fueled by the nation's high rates of vehicle ownership and long history of dependence on gasoline-powered vehicles. As the leading fuel type for private vehicles and light commercial vehicles, petrol remains a major proportion of retail fuel sales at urban and highway stations. Government subsidies on fuel prices, despite recent reforms, have historically made petrol an affordable energy source for consumers, further reinforcing its widespread usage. Furthermore, the infrastructures facilitating petrol, from storage and distribution to sophisticated dispensing systems are well entrenched, thereby supporting delivery efficiency as well as customer convenience. Although alternative fuels and electromobility are gaining popularity, the transition remains gradual, and petrol is expected to maintain its significance over the medium term. Petrol's purpose is not just economic but also strategic and supports ancillary services at fuel stations and revenues for operators.

 Analysis by End Use:

• Road Transport Vehicle
• Air Transport Vehicle
• Water Transport Vehicle

Road transport vehicle leads the market with around 65.4% of market share in 2024. Road transport vehicles drive consistent demand for gasoline and diesel across the kingdom’s extensive road network. With a high rate of car ownership and a preference for private vehicles, particularly in urban and semi-urban areas, road transport remains the dominant mode for both passenger and freight mobility. The government’s ongoing infrastructure investments in highways, logistics corridors, and urban expansion further intensify reliance on-road vehicles, reinforcing the importance of strategically located fuel stations. Additionally, heavy-duty trucks used for goods movement across cities and industrial zones significantly contribute to commercial fuel consumption. This dependence on road transport ensures a steady flow of customers to fuel stations, making them vital nodes in Saudi Arabia’s energy and mobility ecosystem. As alternative fuels gain traction, road transport vehicles will also influence the pace of transition within the retail fuel network.

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

In 2024, Northern and Central region accounted for the largest market share of over 45.2% due their population growth, economic activity, and strategic location. The Central region, which is centered around the capital city of Riyadh, has a high demand for fuel driven by a huge presence of passenger cars, commercial fleets, and government transport. As the administrative and political center, Riyadh's urbanization and infrastructure contribute to constant increases in fuel usage. The North, although less populated, has strategic importance by virtue of its road connection to the neighboring nations as well as serving in transportation and commerce. Fuel stations in these regions cater not only to daily urban commuters but also to long-distance travelers and logistics networks. The increasing government's investment in infrastructure and regional development initiatives further enhances the significance of these regions, making them prime markets for fuel retailers looking to increase their presence and service capabilities.

Competitive Landscape:

The market is experiencing increased competition fueled by liberalization policies, increasing private sector involvement, and growing demand for value-added services. Market competitors are trying to increase network coverage in urban and rural areas, upgrade infrastructure, and offer better services in order to capture market share. International operators' entry and the government's drive towards privatization are accelerating the pace of modernization and innovation. Fuel retailers are also expanding their product portfolios by adding convenience stores, automobile services, and digital payment facilities to gain and maintain customers. Competition is further driven by price policies, fuel quality, and embracing automation and clean energy solutions. With consumers moving towards convenience and technology-based services, companies are focusing on differentiation based on service effectiveness and customer experience. This dynamic is creating a market environment where operational excellence and innovation are critical to success.

The report provides a comprehensive analysis of the competitive landscape in Saudi Arabia fuel station market with detailed profiles of all major companies.

Latest News and Developments:

• January 2025: ENOWA, the energy and water subsidiary of NEOM, opened the Saudi Arabia’s first heavy-duty hydrogen refueling station at Petromin Corporation in collaboration with Hydrogen Refueling Solutions (HRS). The refueling station has already distributed approximately 500 kg of hydrogen in just 12 weeks of operation and marks a significant milestone in the NEOM region’s green hydrogen goals.
• January 2024: Saudi Automotive Services Co. announced the plan launch the biggest gas station in Saudi Arabia. The station, which connects Riyadh with Al-Qassim Province, is a component of the SASCO Al-Jazeera 1 project and is situated along King Fahd Road.

Saudi Arabia Fuel Station Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia fuel station market from 2019-2033.
• The Saudi Arabia fuel station market research report provides the latest information on the market drivers, challenges, and opportunities in the regional market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia fuel station industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.