Higher fuel margins increases number of gas stations in Canada

The number of gas stations in Canada grew for a second consecutive year in 2016 after almost a decade of decline as the market enjoys higher fuel margins.

An annual census prepared by the Kent Group showed a net increase of 15 fuel stations in 2018, bringing the total number of sites in Canada to almost 12,000. In 2015, around 100 petrol stations were added to the market, reports The Canadian Press.

Canada´s fuel retailing market has undergone major ownership changes in recent times as the large refining companies sell most of their networks to buyers who continue to operate under the same brand.

Almost 40% of service stations in Canada sell fuel under a brand associated with the three major refiners: Suncor (Petro-Canada), Imperial (Esso) and Shell. However, only 11% of the nation´s sites were owned by these firms.

Jason Parent, vice-president of consulting for Kent, explained how the industry is enjoying higher fuel margins. Average margins on fuel have risen in the last two years from four or six cents to 8 or 9.