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SIC 5984 Liquefied Petroleum Gas (Bottled Gas) Dealers

SIC 5984
LIQUEFIED PETROLEUM GAS (BOTTLED GAS) DEALERS

This industry consists of companies that primarily sell bottled or bulk liquefied petroleum (LP) gas, which is used mainly for heating homes and businesses in rural areas. This classification includes other byproducts of crude oil, such as bottled butane gas, used as an additive in gasoline and for lighters, and bottled propane gas, which is most often used to produce LP gas.

NAICS Code(s)

454312 (Liquefied Petroleum Gas (Bottled Gas) Dealers)

This industry arose from the industrial revolution, when manufacturers sought plentiful, easily transported fuel. In the twentieth century, dealers of liquefied petroleum and propane and butane gases had customers in commercial, industrial, and residential markets. Industry sales rose with population growth and industrial expansion. However, profitability varied due to changes in demand and production costs, both of which were affected by such factors as economic conditions and the price of crude oil imports used to make these products.

In 1997, the fuel industry employed 98,400 workers, most of whom worked 37 hours a week for an average wage of $13.26 per hour.

In 1999, the industry leader in this category was AmeriGas Partners, L.P. of King of Prussia, Pennsylvania, with sales of $872.5 million and 5,026 employees. In addition to selling engine fuels, AmeriGas sold propane to more than 950,000 residential, industrial, agricultural, and commercial users, and possessed a fleet of 3,400 vehicles. The company is a wholly owned subsidiary of UGI Corp.

Second in this industry was Ferrellgas Partners, L.P. of Liberty, Missouri, with 1999 sales of $624 million and 4,463 employees. Ferrellgas also owned its own delivery fleet, which included 4,000 vehicles, most of which ran on propane gas. Another industry leader was Suburban Propane Partners, L.P. of Whippany, New Jersey, with 1999 sales of $544 million and 3,179 employees. Suburban Propane was spun off from the British conglomerate, Hanson PLC, which still owns 24 percent of the business. The company operated 350 stations in 44 states, and owned its own storage units, railroad tank cars, and trucking fleet. Cornerstone Propane Partners, L.P., of Watsonville, California, another industry leader, employed 2,396 workers.

Liquefied petroleum gas dealerships were also secondary businesses for companies in related industries, such as dealers in SIC 2869: Industrial Organic Chemicals and businesses in SIC 4925: Mixed, Manufactured, or Liquefied Petroleum Gas Production and/or Distribution. In 1989, Quantum Chemical Corp., a retailer in industrial organic chemicals and propane gas, made news when it purchased Petrolane, Inc. in a partnership deal with First Boston. According to Chemicalweek, the purchase was "in line with the company's strategy to grow its propane business through acquisitions." Though a secondary business for Quantum, the propane operations of the company held about 15 percent of the propane market in 1989.

In the 1990s, demand for liquefied petroleum and other petroleum products grew at roughly 1.5 percent annually. However, demand for commercial and residential use declined while transportation use rose.

Further Reading

Hoover's Company Profiles. Available from http://www.hoovers.com.

U.S. Bureau of Labor Statistics. Employment Statistics, 2000. Available from http://www.bls.gov.

U.S. Department of Commerce. 1992 Census of Retail Trade, Washington, DC: U.S. Bureau of the Census, 1995.

Ward's Business Directory of U.S. Private and Public Companies, Detroit: Gale Group, 1999.

Related newspaper, magazine, and trade journal articles from HighBeam Research

(Including press releases, facts, information, and biographies)

	One-Month Lag in Producer Price Indexes for Liquefied Petroleum Gas to Be Removed Effective with Data for July 2001.(Brief Article) Magazine article from: PPI Detailed Report; 5/1/2001; 219 words ; ...Producer Price Index (PPI) for Liquefied Petroleum Gas, commodity code 05-32...eliminated. Since 1971, the liquefied petroleum gas index has been calculated...PPI for January contains liquefied petroleum gas prices for December. In... Read more
	LPG in Xinjiang exported to Pakistan. (Newsdesk: Brief).(Brief Article) Magazine article from: China Chemical Reporter; 1/6/2003; 83 words ; 42 tons of liquefied petroleum gas produced by CNPC Tarim Oilfields...for exports of 1000 tons of liquefied petroleum gas to Pakistan. This batch of exports of liquefied petroleum gas is part of the contract. The... Read more
	Profit growth in gas sector.(Energy)(Brief article) Magazine article from: China Chemical Reporter; 5/16/2008; 305 words ; ...includes man-made town gas, liquefied petroleum gas and natural gas. Man-made town gas and liquefied petroleum gas are being replaced by natural...rapidly. The output of liquefied petroleum gas from January to February... Read more
	Biggest LPG Spherical Tank Pre-Installed in Dalian. Magazine article from: China Chemical Reporter; 12/6/1998; 52 words ; China' s biggest liquefied petroleum gas spherical tank has been successfully pre-installed in Dalian. The tank is designed...Works. The tank has a volume of 8000 [m.sup.3]and can store 7 200 tons of [C.sub.4] liquefied petroleum gas. Read more
	DME capacity expands rapidly, high cost narrows profit.(Energy Chemical) Magazine article from: China Chemical Reporter; 10/26/2008; ; 700+ words ; ...pushed the market price of liquefied petroleum gas to move on. The dimethyl...physical properties with liquefied petroleum gas, and has a lower production...field of blending with liquefied petroleum gas by means of the opportunity... Read more
	Sino-Thai cooperation opens up new import channels.(Trade)(Yunnan-Guizhou-Guangxi Oilfield)(State Oil Company of Thailand )(Brief Article) Magazine article from: China Chemical Reporter; 5/16/2005; 208 words ; ...PTT), on the trade of liquefied petroleum gas and oil products. Therefore...capacity of 800 [m.sup.3] liquefied petroleum gas in Xishuangbanna. The purpose...will import 2 400 tons of liquefied petroleum gas from Thailand by land according... Read more
	One-Month Lag in Producer Price Indexes for Liquefied Petroleum Gas to Be Removed Effective with Data for July 2001. Magazine article from: PPI Detailed Report; 6/1/2001; 700+ words ; ...Producer Price Index (PPI) for Liquefied Petroleum Gas, commodity code 05-32...eliminated. Since 1971, the liquefied petroleum gas index has been calculated...PPI for January contains liquefied petroleum gas prices for December. In... Read more
	One-Month Lag in Producer Price Indexes for Liquefied Petroleum Gas Removed.(Statistical Data Included) Magazine article from: PPI Detailed Report; 7/1/2001; 700+ words ; ...Producer Price Index (PPI) for Liquefied Petroleum Gas, commodity code 05-32...eliminated. Since 1971, the liquefied petroleum gas index has been calculated...PPI for January contains liquefied petroleum gas prices for December. In... Read more
	QATAR: NAKILAT AND Q-SHIP TAKE DELIVERY OF THIRD LPG VESSEL. Newspaper article from: IPR Strategic Business Information Database; 12/28/2008; 105 words ; ...delivery of Al Wukir the third in a series of four Liquefied Petroleum Gas (LPG) carriers. The delivery ceremony took place...W.L.L specifically formed to own and operate Liquefied Petroleum Gas (LPG) carriers. The first two LPG carriers Bu... Read more
	TURKEY: LPG GAS STATION EXPLOSION CAUSE REMAINS UNKNOWN.(liquefied petroleum gas )(Brief Article) Newspaper article from: IPR Strategic Business Information Database; 7/8/2003; 43 words ; According to Hurriyet, explosions at a liquefied petroleum gas station in Ankara injured nearly 189 people over the weekend. Explosions in a low-income district occurred while a tanker was discharging LPG at the station. However, the exact cause of the explosion is not known. Read more

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SIC 5984 Liquefied Petroleum Gas (Bottled Gas) Dealers Encyclopedia entry from: Encyclopedia of American Industries SIC 5984 LIQUEFIED PETROLEUM GAS (BOTTLED GAS) DEALERS This industry consists of companies that primarily sell bottled or bulk liquefied petroleum (LP) gas, which is used mainly for heating homes and businesses in rural areas. This ... Read more

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