Oil product demand in Spain will reach its post-pandemic peak in 2023, after a strong recovery in road and aviation fuel sales. Following this short recovery, demand will enter into gradual decline. The retail segment is highly consolidated with the five leading companies - Repsol, Cepsa, BP, Disa and Galp - controlling more than two-thirds of the market. The penetration of automated sites is growing, but the discount sector is still somewhat underdeveloped. Although gross margins are relatively high compared to other European markets, weakening demand and increased environmental legislation are driving the market leaders to diversify into non-fuel and alternative fuels.