Will the Gas Station Become Extinct?

As American fuel consumption drops, so will the number of gas stations in a classic case of low demand shuttering the supply.

May 08, 2013

NEW YORK CITY – Recently this spring, several major newspapers reported on the demise of gasoline stations in New York City and a Washington, D.C., suburb. Those closures are symptomatic of a larger, nationwide phenomena—the gradually decline of gasoline stations, The Daily Beast reports.

A century after the first retailer started selling gasoline, service stations are little by little easing into the sunset. Each day, three or four gasoline stations go dark. Some sell out to developers because the land is more valuable than their business. Some can’t compete against the Costcos and Walmarts of the area. Some are victims of more fuel-efficient vehicles and changing driving habits. 

According to National Petroleum News, the station count has dropped for seven consecutive years. Within a decade, the number of gasoline stations has declined around 8%. Jeff Lenard, NACS spokesman, points to the 1990s as when the decrease started as hypermarkets, such as supermarket chains and discount retailers, started selling gasoline. Recently, technology and the economy has put more pressure on gasoline stations. 

“The volume of gasoline sales peaked in 2007,” said Lenard. The Energy Information Administration found that Americans bought 3.389 billion barrels of gasoline that year, but each year since, that consumption has dropped. Last year, the number was 6% lower than 2007.

Other contributing factors include more environmental rules for selling gasoline, and a denser population in cities, college towns and close-in suburbs that might eschew cars altogether. 

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