Almost half of Catom’s turnover is achieved through its wholesale trade in petrol, diesel, gas oil and petroleum, by way of its subsidiary Catom Distribution, under the trade name Catom PDM. Catom PDM purchases these bulk products on the open market and sells to oil traders, petrol stations of small independent chains and individual petrol station operators in the Netherlands. Sale prices are set on the basis of market developments and communicated to the customer several times a day. Customers of Catom can use a special pass to load products at pretty much all depots in the Netherlands, in line with their needs. Catom also supplies its own reselling operations and petrol stations through these wholesale activities.
Catom distinguishes itself from other players in this market by means of its higher degree of flexibility and cost-efficiency. By combining fuel volumes competitive pricing can be achieved for customers. With more than 90 buyers and a volume of over 965 million litres of fuel per annum – including its own reselling and retail volumes – Catom’s wholesale activities have a market share of 5 to 10%. Catom PDM has been active in this market since its inception in 1998 and has achieved its current market position largely through autonomous growth. Catom has a point of purchase at virtually all depots in The Netherlands thanks to having long-term contracts in place. In addition to this, the business has its own stock locations; storage capacity at its own depot in ‘s-Hertogenbosch and rented at several depots at other locations nationwide.
The business has an excise authorisation, a prerequisite for being able to trade competitively in this commodity market.