Central Boston Becoming a Fuel Desert

A lone downtown gas pump is likely to disappear soon.

February 21, 2012

BOSTON - Earlier this week, the Boston Globe highlighted the disappearance of gas stations in central Boston. Indeed, Grampy??s is the lone station still operating, and construction for a five-story office building that will take over its site is scheduled to begin as early as next year.

The disappearing act is not difficult to understand: Real estate prices in Boston are expensive, and high-rise buildings are worth far more than the profits that a gas station generates.

"The main reason why you see a fuel desert is it??s just not profitable for a retailer to operate there,???? said Jeff Lenard, spokesman for NACS. "The land is too expensive to make 3 or 4 cents a gallon profit.????

Boston is not alone, though, as many urban centers are at a loss for fueling options.

"Almost every major city little by little is losing its service stations,???? said Michael J. Fox, executive director of the Gasoline & Automotive Service Dealers of America. "The economic return on investment is no longer there.????

It??s not as if Boston is doing anything to foster patronage of gas station. Last year, the city installed three electric car-charging stations to encourage drivers to abandon gasoline-powered vehicles.

For more on the fuel desert phenomenon, see "Running Out of Gas" in an upcoming issue of NACS Magazine.

Advertisement
Advertisement
Advertisement