NAICS 4247 - Petroleum and Petroleum Products Merchant Wholesalers
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What is NAICS 4247
NAICS code 4247 covers establishments primarily engaged in the merchant wholesale distribution of petroleum and petroleum products, including liquefied petroleum gas (LPG). Businesses operating under this classification act as intermediaries between petroleum producers and end users or retailers, handling the logistics, storage, and sale of fuels and related products. This sector plays a crucial role in ensuring the reliable supply of energy products essential for transportation, heating, power generation, and industrial uses. Government agencies rely on these businesses to meet their operational fuel needs, maintain energy reserves, and support emergency response capabilities. Due to the critical nature of fuel supplies, contracts in this sector often emphasize reliability, compliance with regulatory standards, and secure delivery.
Industry Classification for NAICS 4247
This industry group comprises establishments primarily engaged in the merchant wholesale distribution of petroleum and petroleum products, including liquefied petroleum gas.
Breakdown for NAICS 4247
- Covers wholesale distribution of petroleum and petroleum products including LPG.
- Includes merchant wholesalers acting as intermediaries between producers and end users.
- Businesses handle storage, transportation, and sale of bulk fuels.
- Supports critical sectors like transportation, energy, and emergency services.
- Subject to regulatory oversight related to safety and environmental standards.
Included Activities for NAICS 4247
- Purchasing and reselling petroleum products in bulk quantities.
- Managing storage facilities for petroleum and liquefied petroleum gas.
- Coordinating logistics and transportation of fuel products to customers.
- Ensuring compliance with safety and environmental regulations.
- Providing fuel supply and delivery services for government fleets and facilities.
- Maintaining fuel inventory and emergency reserves.
- Negotiating contracts with petroleum producers and government agencies.
- Monitoring market conditions and adjusting supply strategies accordingly.
Business Types for NAICS 4247
- Petroleum product merchant wholesalers
- Fuel distribution companies
- Bulk fuel suppliers
- Liquefied petroleum gas (LPG) distributors
- Energy logistics providers
- Fuel storage and handling companies
Government Buyers for NAICS 4247
Federal, state, and local government agencies commonly procure petroleum and petroleum products to support a variety of operations including transportation fleets, military activities, emergency services, and facility heating. Agencies such as the Department of Defense, Department of Energy, General Services Administration, and state transportation departments frequently contract for bulk fuel supplies and distribution services. These purchases ensure uninterrupted energy availability for critical infrastructure and mission readiness, especially in remote or high-demand areas where on-site storage and timely delivery are vital.
Contract Types & Procurement for NAICS 4247
Contracts in this NAICS sector typically include firm-fixed-price and indefinite delivery/indefinite quantity (IDIQ) agreements, often awarded through competitive bidding or negotiated procurement methods. Government contracts may involve bulk fuel purchases, fuel card services, or logistics support for fuel distribution. Contract values vary widely, from small supply orders for local agencies to multi-million-dollar agreements supporting large-scale military operations or national energy programs. Long-term contracts with multiple awardees are common to provide flexibility and ensure consistent supply under varying demand conditions.
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