LONDON, Ontario – Canada’s gas stations are increasingly becoming divorced from the crude oil producing and refining sectors that have traditionally maintained a “well-head to gas tank” vertical integration of assets and operations, according to a recent survey of Canada’s retail gasoline facilities by petroleum consultancy MJ Ervin & Associates.

The total number of retail gasoline stations in Canada stands at 11,849 as of Dec. 31, 2013. This represents a continuing downward trend since 1989, when more than 20,000 stations existed.

“We have seen virtually no increase in the retail gasoline margin in over 25 years,” said Michael Ervin of MJ Ervin & Associates, in a press release. “Retail gas stations are no longer seen as a strategic asset for integrated oil companies.”

Only 15% of Canada’s gas stations come under the direct price control of the three major oil companies (Shell, Suncor and Esso), although their brand names appear on 37% of all gas stations, many of which are price controlled by the local dealer, or by a regional marketer holding the rights to use the major brand on its sign and pumps.

As of Dec. 31, eight integrated refiner-marketers operated in Canada, representing a total of 13 refineries across the country (this does not include the Valero refinery in Quebec). During 2013, the number of integrated refiner-marketers declined from nine to eight, with the split of Valero, the owner of Ultramar, into separate refining and marketing companies. By contrast, there are more than 60 petroleum marketers in Canada who do not operate refineries, and more than 90 distinct gasoline brands.

These non-refiner marketers represent 81% of Canada’s retail gas stations, up from 70% in 2006, and reflect a shift in retail gasoline ownership from refiners to non-refiners. A growing segment of this sector is the big box retailer, which has proliferated over the past decade and, through competitive pricing and other incentives, has contributed to the overall decline in conventional gas stations.