424720 - Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
When it comes to the wholesale distribution of petroleum and petroleum-based products, NAICS code 424720 plays a vital role in defining the industry landscape. This specific classification targets businesses involved in merchant wholesale distribution but excludes bulk stations and terminals, making it an essential niche within the Wholesale Trade sector.
What is NAICS Code 424720?
NAICS code 424720 covers establishments primarily engaged in the merchant wholesale distribution of petroleum and petroleum products, except bulk stations and terminals. These businesses supply a variety of petroleum-based fuels and lubricants to retailers, commercial users, and industrial customers.
Key Products Sold Under NAICS 424720:
- Gasoline
- Diesel fuel
- Lubricants and oils
- Aviation fuels
- Alternative and blended fuels
Sector Overview: Wholesale Trade
NAICS 424720 is categorized under the Wholesale Trade sector. Businesses under this code focus on the resale of petroleum products without operating storage terminals or bulk stations. Instead, they act as intermediaries between manufacturers or refineries and retail or commercial end-users.
Typical Business Activities in NAICS 424720
Businesses operating within NAICS 424720 often engage in:
- Distribution of gasoline and diesel fuel
- Wholesale of lubricants and petroleum oils
- Supplying aviation and marine fuels
- Marketing biodiesel and ethanol-blended fuels
- Providing propane and butane gas to retailers or industry
Examples include:
- Gasoline distributors
- Diesel fuel wholesalers
- Lubricant and oil product wholesalers
Size Standards and Eligibility
The Small Business Administration (SBA) uses employee count to define size standards for contracts and other benefits related to NAICS codes. For NAICS 424720, the size standard is:
- 200 employees
This means companies with 200 or fewer employees generally qualify as small businesses under this industry classification.
Detailed NAICS 424720 Code Breakdown
| Code Detail | Description |
|---|---|
| Alternative fuels, blended with petroleum, merchant wholesalers (except bulk stations, terminals) | Wholesale of alternative fuels mixed with petroleum |
| Asphalt binder merchant wholesalers (except bulk stations, terminals) | Wholesale of asphalt binder products |
| Asphalt, liquid, merchant wholesalers (except bulk stations, terminals) | Wholesale of liquid asphalt |
| Biodiesel, blended with petroleum, merchant wholesalers (except bulk stations, terminals) | Wholesale biodiesel fuels blended with petroleum |
| Biofuels, blended with petroleum, merchant wholesalers (except bulk stations, terminals) | Wholesale biofuels combined with petroleum |
| Butane gas merchant wholesalers (except bulk stations, terminals) | Wholesale distribution of butane gas |
| Crude oil merchant wholesalers (except bulk stations, terminals) | Wholesale crude oil without bulk terminal operations |
| Diesel fuel merchant wholesalers (except bulk stations, terminals) | Wholesale diesel fuel |
| Ethanol, blended with petroleum, merchant wholesalers (except bulk stations, terminals) | Wholesale ethanol-blended fuels |
| Fuel oil merchant wholesalers (except bulk stations, terminals) | Wholesale fuel oil |
| Fuel oil truck jobbers | Fuel oil delivery using trucks |
| Fuel, aircraft, merchant wholesalers (except bulk stations, terminals) | Wholesale aviation fuels |
| Fueling aircraft (except on contract basis), merchant wholesalers | Wholesale aircraft fueling services (non-contractual) |
| Gasohol merchant wholesalers (except bulk stations, terminals) | Wholesale gasohol (gasoline-ethanol blend) |
| Gasoline merchant wholesalers (except bulk stations, terminals) | Wholesale gasoline |
| Kerosene merchant wholesalers (except bulk stations, terminals) | Wholesale kerosene |
| Liquefied petroleum gas (LPG) merchant wholesalers (except bulk stations, terminals) | Wholesale LPG |
| Lubricating oils and greases merchant wholesalers (except bulk stations, terminals) | Wholesale lubricants and greases |
| Oil, petroleum, merchant wholesalers (except bulk stations, terminals) | Wholesale petroleum oils |
| Petroleum and petroleum products merchant wholesalers (except bulk stations, terminals) | General wholesale of petroleum products without terminals |
| Petroleum coke merchant wholesalers | Wholesale petroleum coke |
| Propane merchant wholesalers (except bulk stations, terminals) | Wholesale propane |
FAQ About NAICS Code 424720
Q1: What businesses fall under NAICS 424720?
A1: Businesses such as gasoline distributors, diesel fuel wholesalers, and lubricant and oil product wholesalers typically fall into this category.
Q2: Does NAICS 424720 include bulk stations or terminals?
A2: No, this code specifically excludes bulk stations and terminals.
Q3: What is the SBA size standard for NAICS code 424720?
A3: The size standard is 200 employees or fewer for eligibility as a small business.
Q4: Can this NAICS code apply to companies distributing alternative fuels?
A4: Yes, merchant wholesalers of blended alternative fuels like biodiesel or ethanol are included under this code.
Q5: Is aviation fuel distribution covered under NAICS 424720?
A5: Yes, wholesale distribution of aircraft fuels (except on a contract basis) is included.
NAICS code 424720 offers a clear classification for businesses dealing in the wholesale distribution of petroleum and petroleum products, excluding bulk terminals. Understanding this code is essential for businesses seeking government contracting opportunities, market analysis, or compliance in the Wholesale Trade sector.
Optimize your petroleum wholesale business strategy by aligning with NAICS 424720 standards and tapping into the growing demand for diversified fuel products.
