Eco-cars go by, gas stations go under [In Japan]

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Daisuke Segawa / Yomiuri Shimbun Staff Writer

The spread of eco-friendly vehicles could spell doom for about two-thirds of the nation's 40,000 gas stations in the next decade, and, according to one observer, even render some rural communities uninhabitable.

More than 2,000 gas stations have been closing down annually in recent years, but this figure looks set to jump as more drivers opt for green cars that run on less fuel--or none at all.

The Federation of Petroleum Product Dealers Associations (Zensekiren) estimates that if eco-friendly vehicles account for half of new car purchases and 20 percent of all vehicles in fiscal 2020, annual demand for gasoline will plunge to 40.88 million kiloliters, down 29 percent from fiscal 2008, while demand for light fuel oil will fall 15 percent to 28.66 million kiloliters.

"In the worst-case scenario, only about 12,500 of the nation's gas stations, or fewer than one-third of the current figure, would still be operating in fiscal 2020," said an executive of Zensekiren, a nationwide body with a membership of about 20,000 petroleum product retailers.

If eco-friendly vehicles such as electric and gas-electric hybrid cars catch on even more than Zensekiren expects, filling stations could face an even bleaker future.

The demise of gas stations would be felt particularly keenly in mountainous areas and rural regions, where people tend to rely on vehicles for getting around during their everyday life. Gas stations are often at the heart of communities as the sole suppliers of kerosene and fuel for farm equipment.

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