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The following is being distributed at the request of Dennis Browne, Q.C: Oil companies seek more efficient operation: Gasoline stations closing throughout province Consumer advocate Dennis Browne stated today that the major oil companies are closing gasoline outlets which they deem not to be profitable. Browne stated: "In Canada the number of gasoline stations has decreased from a high of approximately 25,000 to fewer than 18,000. In excess of 100 gasoline stations have closed throughout this province in the last five years." Browne noted: "The retail gasoline business is undergoing a rationalization in the province, and indeed throughout the country. It has been suggested that retail outlets that sell only gasoline would need to sell in excess of 1.5 million litres a year in order to remain viable. Particularly in small communities this may be next to impossible. It is for this reason that many service stations have moved to introduce other revenue generators such as convenience stores, car washes and fast food kiosks. "Residents in rural areas will have noted the closure of many of their gasoline stations. In urban areas, residents will have experienced the closure of some marginal operations and, at the same time, the opening of new multi-service stations close to new residential neighbourhoods or the refurbishment of existing stations." Browne added: "While we recognize the need for the major oil companies to improve their operations, we are concerned that this rationalization process, if left unchecked, could result in too few competitors in some markets. It may be beneficial to encourage independents to enter the market place in order to ensure there is sufficient competition." Contact: Dennis Browne, Q.C., (709) 754-1800, Fax: (709) 754-2701, E-mail: french.browne@nf.sympatico.ca 1997 11 24 12:50 p.m.
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