For an entire decade, the number of retail sites selling gasoline declined.
Last year, according to the Kent Group’s 2016 National Retail Petroleum Site Census, the number increased, as it had the year before.
Yet it was a small number. As of December 31, 2016, there were 11,931 retail gasoline station operating in Canada, or 3.3 outlets per 10,000 people — up by just 15 sites over 2015.
The small increase ended the decade-long trend of fewer stations; indeed, between 2005 and 2015, the number of stations had declined by nearly 20 per cent.
“Retail stations have declined because there were a lot of smaller sites, which pumped less volume, and older sites that had difficulty staying in business when retail margins were stagnant for most of the last 25 years,” explained Jason Parent, vice-president, consulting, with the Kent Group. The company tracks and reports on the fuels industry.
Older sites were less diversified, with fewer offerings such as convenience stores or car washes.
However, things have changed slightly over the past few years.
“The recent uptick is the result of fewer closures, and is driven by retail margins that have risen over the last two to three years, along with there simply being fewer of those smaller inefficient sites remaining in the market,” Parent explained.
Check out our fuel facts below for more information on gasoline retailing in Canada, and stay tuned for next week when Parent will explain the relationship between refineries and gasoline and diesel marketers. And read more about who control gas stations in our previous blog.
