Imperial Oil Ltd banner

Economic Moat

Imperial Oil has no economic moat

Customers can buy comparable oil and fuel from other suppliers, leaving Imperial Oil little room to charge more simply because it makes the product. Its large operations help it compete, but rivals also combine oil production, refining and fuel distribution rather than leaving those advantages exclusive to Imperial.

Why Imperial Oil has no moat

Drivers can switch easily

Limited brand pricing power

Scale is not exclusive

The explanation behind each reason