What Will Happen to Gas Stations?

Is the future of gas stations in doubt? With the advancement of EVs and a push for half of the cars sold by 2030 to be all-electric, the future could be bleak.

Companies that operate refueling stations will likely need to begin an expansion to offer EV chargers at their locations or face the possibility that their time in business is limited. As bad as that sounds, it’s going to be a long time before gasoline and diesel vehicles are gone from the landscape, which also means stations to refill these vehicles still need to be available.

More EV Charging Stations for the Future

The old question of “which came first, the chicken or the egg” is an exercise in infrastructure support and growth. Ten years ago, we wouldn’t have ever thought that more electric charging stations would be needed in 2022. The EVs we saw on the roads a decade ago were laughable at best. Most of these models were small, low-powered, and barely offered any driving range. The most popular of them was the Nissan Leaf, and it couldn’t go for more than 60 miles on a full charge. At that time, our EV future didn’t appear to be much more than a glimmer.

Electric Vehicles Move in On Driving Territory

The future of gas stations isn’t so much in doubt as it is reaching an expiration date. Today, nearly every automaker either already does or plans to offer electric vehicles for the future of driving. We now see some EVs that can drive for more than 300 miles on a single charge and recharge a healthy percentage of that range in less than one hour. While this still doesn’t quite match what can happen with a gasoline vehicle, there’s a massive push to have EVs everywhere.

Strong Influence from the White House

Ever since Joe Biden took office as the President, his push toward EVs has been at the forefront of his agenda. By 2030, half of all new vehicles sold in the United States are to be electric models. This is a huge change from what we’ve experienced in the past. Electric vehicles from a decade ago could have been thought of as cute, interesting, or funny without much more thought to them. Today, we see SUVs, pickup trucks, and sports cars that use electric powertrains to give us a wide range of possibilities in an electrified world.

The Cart Didn’t Come Before the Horse, but the Cart Needs to Catch Up

Some cities have embraced the EV future and offer public electric charging stations in various locations. Other cities have fallen behind and aren’t quite on the same level as those with public chargers. Some gas stations will likely find the competition to be troublesome. Some locations already have EV charging stations installed for public use at a price, but they have to compete with other public charging locations. These stations will likely rely on gasoline and diesel to supply the profits, while EV charging locations bring customers into the convenience store for a snack while waiting for their electric car to charge.

Charging Time Does Give Stations an Advantage

Those fuel locations with electric chargers could have a serious advantage in potential profits. Consider a station with electric chargers and an in-house restaurant. Regardless of the amount of charge a customer desire for their EV, it takes longer than pumping gas. This means most EV customers will have more time to spend at the fuel station while waiting for their vehicle to reach the desired charging level. This is time for a meal, to sit down and do a little work using remote Wi-Fi, and for the station to benefit from the time spent at the location.

Public EV Chargers Aren’t Used Daily, Unless Required

EV drivers that live in large cities might use public EV charging locations every day, but most rural homeowners with garage access do not. The benefits of charging an EV at home versus at a public charger mean most people want to charge when they get home. Some employers have chosen to add EV chargers in their employee parking areas, enticing their staff to drive electric vehicles. This all means that public chargers aren’t required every day.

Gas Stations Along Interstates Could Benefit the Most

Americans love road trips. We have a vast country of 48 continuous states that can be explored, and some people set out to explore them all. We’re certainly not going to all-electric vehicles to keep us off the roads and away from road trips. Because of this factor, many of the gas stations along interstates could benefit if they have EV charging stations installed. These additional refueling ports are much easier to add to the station than digging a hole for a massive fuel tank that would need to be buried in the ground.

Refueling Companies Can Worry, But They Have Many More Years

Even though there’s a push toward EVs, which does mean fewer gallons of gasoline sold at stations around the country, these stations won’t go extinct for several years. In eight years, 2030, only half of the vehicles sold are to be EVs. Those are the new vehicles, not the used models or the ones already on the road. Even with this increase, gas stations will still be viable long after this date.

The Clock is Ticking Slowly

In addition to the fact that we’ll have gasoline-powered vehicles on the road for many years longer, diesel-powered semi-trucks will likely have a longer life. Right now, none of the technology offered for electric vehicles can compete with a semi-truck that has two tanks. Those trucks can drive up to 2,100 miles without refilling, while an EV semi cannot handle this distance and must recharge for several hours regularly. Time is money in the world of over-the-road trucking, and stopping overnight to refuel doesn’t make sense. This means truck stops aren’t about to lose much of their diesel business.

Gas stations may feel the surge of EVs over the next few years, but this can be recouped by installing EV charging ports.