Annual study also reveals a continued drop in outlets operated by
integrated refiner-marketers and a continued decrease in the number of
retail fuel sites in Canada.
LONDON, ON, June 10, 2013 /CNW/ - According to a recent survey of
Canada's retail gasoline facilities by petroleum consultancy MJ Ervin &
Associates, 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.
The total number of retail gasoline stations in Canada stands at 12,285
as of December 31, or 3.5 gas stations for every 10,000 persons; this
represents a continuation of a downward trend since 1989, when over
20,000 stations existed. "We have seen virtually no increase in the
retail gasoline margin in over 25 years," states Michael Ervin of MJ
Ervin & Associates. "Retail gas stations are no longer seen as a
strategic asset for integrated oil companies," since refiners typically
have ongoing gasoline supply agreements with several third-party retail
chains who themselves do not operate refineries.
Only 14 percent 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 36 percent 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
At the time the study was completed, nine integrated refiner-marketers
operated in Canada, representing a total of 15 refineries across the
country. Recently, the number of integrated refiner-marketers declined
to eight, with the recent split of Valero, the owner of Ultramar, into
separate refining and marketing companies. By contrast, there are over
60 petroleum marketers in Canada who do not operate refineries, and
over 90 distinct "brands" of gasoline.
These "non-refiner marketers" represent 77 percent of Canada's retail
gas stations, up from 70 percent in 2006, and reflecting 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.
The study, entitled the National Retail Gasoline Site Census 2012, is a
research project by MJ Ervin & Associates and is the only comprehensive
enumeration of the number of retail gasoline stations in Canada.
MJ Ervin & Associates (a division of The Kent Group) is a London-based
consultancy specializing in the petroleum refining and marketing
industry. MJEA publishes the Weekly Pump Price Survey, Canada's
authoritative source of petroleum prices (available at no cost on our
web site www.kentmarketingservices.com). Our clients span a wide range of government, NGO and industry
organizations with an interest in downstream petroleum issues. A full
description of our consulting services is available on our web site.
SOURCE: The Kent Group
For further information:
contact Michael J. Ervin at 519-672-7000 ext 111, or Jason Parent at 519-672-7000 ext 112.