Canada Added More Gas Stations in 2016

The number of Canadian gas stations increased for the second straight year.

May 17, 2017

LONDON, Ontario – The number of gas stations in Canada increased last year after a 10-year drop, The Canadian Press reports. This is the second consecutive year of growth for the industry.

In its annual survey, the Kent Group found a net gain of 15 stations last year, bringing the total to nearly 12,000, or around three gas stations for every 10,000 people. In 2015, more than 100 new stations opened.

The survey found that 39% of Canadian stations sold fuel branded by three major refining companies—Imperial (Esso), Suncor (Petro-Canada) and Shell. The three companies owned or managed only 11% of those locations.

Jason Parent, vice-president of consulting for Kent, pointed out that the average gasoline margin rose 8 or 9 cents per liter over the past two years, up from the 20-year average of 4 or 5 cents, giving owners more profit from the pump. Parent said that fewer gas stations are going under because those higher profit margins help low-volume performers more.

Fewer big box stores like Walmart and Costco opening gas stations in 2016 also contributed to the industry’s growth. “That said, big box sites are very unique in that they do a ton of volume and they have a big impact on the market even if there are only a couple of them,” he said.

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