Energy & Commodities

Fuel Station 2025: Q&A With Ujjwal Deb on the Gulf Cooperation Council

Consumer demands are shaping so many industries globally. Is this true in these countries too?

Absolutely. Consumer demand is a major force of transformation in fuel retail across these countries, especially those that are in a more mature phase. Consumers are very digitally savvy. Mobile phone use is huge. Every store, gym, retailer—you name it—has apps that people use.

So consumers are big into digital. What else should we know about them?

For one, a significant portion of people are not drivers themselves. This greatly impacts experience design. It is one thing to gear the fuel station experience to the driver. It is quite another to gear it to the person in the back seat who is the one paying the bills. Forget driver voice recognition technologies that are being explored in other regions. They don’t apply here.

Owners don’t tend to get out of their cars at fuel stations. So in some countries, station attendants pump the gas. And in countries with a more mature retail fuel industry, payments happen on a mobile card reader.

I’d also say that people in these countries like getting a good deal. Who doesn’t really? Also, while they care about protecting their personal data, these consumers are typically more open to their data being used to tailor targeted offers. This bodes well for the ability to bring hyper-personalized experiences to the fuel station of the future.

Knowing all this, what services and experiences do you expect at fuel stations in the next five years?

There are six game changers that fuel retailers need to get right now to remain relevant to their future customers. They are mobile apps, electric vehicle charging stations, fingerprint authentication for payment, expanded food and beverage, convenience and personal services. These are as relevant in North America and Europe as they are in the UAE and Qatar.

But in Saudi Arabia, they have to focus on getting their stations to a baseline, and evolving from there. Ultimately, I expect that if ideas that have worked in the West are presented, and there is interest, we may see shorter implementation times, so they have an advantage.

You mention electric vehicle charging stations. So even in this petroleum-rich part of the world, alternative forms of transportation are gaining traction?

Yes, even though it seems counterintuitive. But governments realize that the status quo must change over time for the future of their economies and for the planet. There is interest in exploring alternative fuel sources, and investments are already happening. Did you know that the world’s largest single-site solar farm is located in Abu Dhabi? Most people are surprised to hear this.

How will industry players know which of these services to prioritize?

The data will tell them. That is why micro-segmentation of consumer data is so important to building the fuel station of the future. There are different consumer personas to consider. There is a lot of driving among the seven Emirates, which means there are a lot of people driving longer distances. They are going to want to fuel up, rest up and get a bite to eat at the station. These long-ride consumers obviously have different needs than people driving—or being driven—on short trips or daily commutes.

For example, we helped a large global oil company collect data for about seven million consumers. For the first time, the company was able to build rich customer profiles and better understand their behaviors so they could provide more personalized offerings—which in turn has increased the company’s market share.

Do you envision fuel retailers working with partners to provide retail services?

I certainly do. This is happening today. For example, there are McDonald’s restaurants in Abu Dhabi National Oil Company (ADNOC) stations, the UAE’s state-owned oil company. I do think the industry will expand the kind of partnerships it has so that it can provide services beyond the typical food and beverage and convenience offerings. A partnership with Amazon, and the installation of Amazon lockers is not out of the question here.

Five years from now, is pumping gas still going to be the top reason people go to the fuel station?

There is no reason why it can’t be something else—something that we don’t even call a fuel station anymore. This will take a completely new value proposition. You can have better food and more convenience offerings, but that still doesn’t move the needle on the station as we know it today. There has to be something fundamentally different that excites consumers and fills an unmet need.

Sources:

1. BCC Research, “Gasoline Stations: Global Markets to 2022,” May 2018