Sectors/Downstream Energy

Growth for downstream energy.

Fuel and lubricants distributors face volatile prices, thin margins and a shrinking heating oil market. We have run these businesses, and we help owners grow margin, keep customers and move into what comes next.

Fuel tanker at in London
100,000+jobs supported by the UK fuels industryFuels Industry UK, 2024
1.5mUK homes heated by oil, using over 3 million tonnes of kerosene a yearUKIFDA Databank, July 2025
c.2%typical haulage margin, with running costs up 5.9%RHA Cost Movement Survey, Dec 2025
What we see

Growth in downstream energy is hard right now.

The same pressures come up again and again with the owners we talk to.

Prices that won't sit stillHeating oil prices nearly doubled in early 2026, squeezing cash and testing customer trust.
A shrinking core marketBigger heat pump grants for oil-heated homes mean the domestic heating oil base will shrink over time.
Costs rising faster than marginDriver, wage and vehicle costs keep climbing while margins stay at a few per cent.
ConsolidationLarger groups are buying depots, sites and regional distributors, raising the bar for independents.
Our team's experience

We have run fuels and lubricants businesses.

We are operators, not career consultants. This is work we have done in our own businesses.

Fuels distribution, depot to customerOur team has led fuels distributors with their own depots and fleets, growing earnings 26 times and reaching an exit of over £50 million.
Lubricants, made and soldWe have doubled profit in a lubricants business by simplifying the range and the offer.
Early on lower-carbon fuelsWe launched sustainable low-carbon fuels before most of the market, and joined acquired businesses into one network.
Fuel station at night
Where growth comes from

Three places to start.

1Price with disciplinePrice by customer and product, with clear rules for volatile weeks, so margin isn't given away when prices spike.
2Keep the customers you haveAutomatic top-up, account plans and fuel card bundles stop customers shopping on price every order.
3Grow into lower-carbon fuelsHVO and renewable fuels keep fleet and off-grid customers with you as their own carbon targets tighten.
Sector news

What's happening in downstream energy.

The stories that matter for owner-managed businesses, with what each one means for growth. Updated from our client portal.

Budget 2026 sets out the UK government's energy agendaFrom the portal

The recent UK budget outlines massive financial commitments to clean power and infrastructure over the next decade. This includes substantial funding for hydrogen projects and billions in green bonds to provide certainty for investors.

Why it matters:Mid-sized energy firms can tap into a huge pipeline of government-backed infrastructure and hydrogen projects. Clear funding commitments make it easier to plan long-term investments and secure lucrative supply chain contracts.
Osborne Clarke
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UK energy regulator Ofgem launches grid connection overhaul consultation, with data centers a focal pointFrom the portal

The UK energy regulator is reviewing how electricity connections are granted to address a massive backlog of projects. The proposed changes aim to speed up grid access and prioritize developments aligned with national strategic plans.

Why it matters:Faster grid connections will remove a major bottleneck for independent energy developers trying to get new sites operational. Companies that align their projects with government priorities will likely see quicker approvals and faster paths to revenue.
DCD
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New Cardiff Consultancy Launches to Support Growth of Nuclear and Energy SectorFrom the portal

A new commercial management practice has opened in Wales to help deliver complex nuclear and renewable infrastructure projects. The launch highlights the growing demand for professional services and supply chain support in the regional energy market.

Why it matters:Regional infrastructure developments like small modular reactors offer excellent contract opportunities for local suppliers. Growing your service offerings to support these large scale projects can provide steady revenue streams.
Business News Wales
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UK Budget 2026: Highlights for the energy sectorFrom the portal

The latest budget outlines plans to lower bills by moving existing renewable power sites onto fixed price agreements. It also details the launch of a state backed grid operator intended to increase competition and speed up network connections.

Why it matters:Faster grid connections will remove a major bottleneck for commercial energy projects and allow regional installers to complete work more quickly. Firms that help commercial clients transition to renewable power will see increased demand as the government pushes to stabilise energy costs.
Energy Voice
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