The objective of this research was to design an economically efficient logistics management model for fuel retail enterprises to improve their competitiveness. In the current global market situation, fuel retail enterprises face various challenges, such as sharp increase in raw material price, intense market competition, high price sensitivity, low profitability, and significant logistics costs. By combining theoretical and practical insights, an improved logistics management model was designed, which provides significant competitive advantage for fuel retail enterprises. The designed model incorporates and integrates three distinct logistics arrangements, resulting in considerable advantages for fuel retail enterprises. These advantages include a reduction in logistics costs and increased independency from the fluctuating logistics service expenses. To determine the economic efficiency of the designed logistics management model, it was validated by using data obtained from a fuel retail enterprise based in Sweden. Results of the research indicated that the fuel retail enterprise can anticipate an annual reduction in logistics costs ranging from 2.91% to 3.32% from the implementation of the improved logistics management model. On top of that, the developed logistics management model is projected to be economically viable until 2027, assuming the continuation of the current market trends and conditions. The findings of the research suggest that other fuel retail enterprises may also benefit from implementation of the designed model in the current market conditions.