Drivers are planning ahead more because of fewer gas stations: analyst

VANCOUVER (NEWS 1130) – Are you spending more time looking for a gas station? If you live in an urban centre like downtown Vancouver, that may be the case. According to recent numbers from the Kent Group, a consulting and analytics firm based in Ontario, the number of stations in many dense, Canadian metropolitan centres has decreased in the last 15 years.

There are now two gas stations in downtown Vancouver. One (an Esso) is located at Burrard and Davie. The other (a Chevron) has been undergoing renovations, but is set to re-open tomorrow on Georgia Street, near Cardero.

Back in the day, there used to be a Shell station across the street from the Esso at Burrard and Davie. That lot now houses a community garden. There was also a Shell at 1125 Denman Street, but that piece of land now sits vacant.

Numbers provided to NEWS 1130 from various municipalities are telling. In Metro Vancouver, there are currently 431 gas stations, with 71 located in Vancouver. Compare that to a growing suburb like Surrey, where there were 76 gas stations within city limits last year.

The Manager of Community Planning for Surrey, Don Luymes, says there 69 operational stations in 2005.

“While there was an increase of seven gas stations (a 10% increase) in Surrey over the last decade, the number of operation gas stations per person, based on Surrey’s population growth over that period, has gone down by about 15%.”

In Richmond, there were 21 gas stations in 2001. There are 18 today. In the City of North Vancouver, 12 stations were open for business in 2001. Today, there are six. Chilliwack has remained steady with 33 stations over a 15 year period.

Canadian petroleum trends

Jason Parent, vice-president of Kent Group, analyzes Canadian trends in the petroleum industry. “In the past 20 years or so, we’ve seen a significant decline in the number of sites. We’ve gone from over 20,000 sites nationally down to just under 12,000 sites, which is a pretty significant decline. In the last couple of years, we’ve seen a slowing of that decline, and this year our census, which we’re about to release, is going to show an increase in the number of sites for the first time in the last 20 years.”

LISTEN: NEWS 1130 anchors John Ackermann and Alison Bailey speak with Jason Parent, VP of Kent Group

When asked why there had been a declining trend, Parent says small operators face new challenges and bigger convenience chains are able to pick up the customers.

“By nature, it’s a low margin business. A lot of the smaller, inefficient players, the guys who weren’t selling a lot of volume are under cost pressure. Those guys are the ones who are forced out of business, generally. In the major urban centres in Canada, you see less site representation in the big city and more in the suburbs. What companies are trying to do, when they build sites, is try to be located in a convenient place. They want to be where people are, where people live, closer to where they live. And that’s simply to provide better access to facilities.”

Parent believes drivers are planning ahead more than they used to. “I think they certainly have more tools at their disposal nowadays, with all the apps out there which will show you where all the sites are and where you can get the best price. I think people are putting more thought into it now.”

Andrew Klukas is the president of the Western Convenience Stores Association and says his organization hasn’t seen a lot of growth in urban centres. He echoes Parent’s comments about stores moving out to suburbia.

“There are a number of reasons. As we know, insurance costs and high property values in this area have gone through the roof, that and the taxes. The cost of developing a site has gone up considerably. We see consolidation happening. When you have to build a site, you have to build a relatively large site now.”

Klukas also believes customers are planning ahead more than they used to. “They plan around what is there. When I fuel up I do a bit more planning because it’s not quite as easy, I live in Yaletown. If I lived in a suburban area it might be a lot easier.”

Fewer gas stations, more charging stations

While there are fewer gas stations now than there were a decade ago, the number of electric vehicle charging stations is increasing. Klukas predicts convenience stores will adapt and evolve to include charging stations.

President of the Vancouver Electric Vehicle Association, Bruce Stout, says there are dozens of electric vehicle charging stations around Canada right now. He says the majority of charging happens at home, but drivers need more stations to increase their range if they’re planning to travel long distances. “The model of the future is going to be a couple of pumps that will put electricity into your car, as much as 80 kilometers in half an hour, and a place for you to buy your groceries, have a cup of coffee, and have lunch.”

Plugin BC‘s website states: “The Province of BC and the federal government are supporting 30 DC fast chargers through a pilot managed by BC Hydro. As of February 2016, there are 18 sites in BC to fast-charge your EV (not including Tesla’s SuperChargers). These stations are located throughout the province and concentrated in the Lower Mainland. There are more planned and locations will be determined based on a range of factors including distance between stations and completing a full corridor loop in the Southern Interior.”

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