No gas in Kingston tanks

BY NANCY KELLY

Kings County Register

Lawrence England says getting squeezed by “the big box stores” shut off the gas pumps at his Kingston service station.

“I just wasn’t making any money,” says England of his decision to let his oil tanks run dry July 11. He points to the arrival of the Superstore gas bar and a recent collaboration between Sobeys and Irving as determining factors.

“I just have a small station and I cannot compete with the big stores and their coupons and incentives.”

In the past, England station could sell 8,000 litres of gas in a few days. Recently, it has taken up to or more than a week to sell his inventory.

“My suppliers want me to sell a certain volume and it was getting tough to do it,” says England.

Several years ago, the station was dropped by Ultramar for under-target sales.

While provincial regulations didn’t make matters any easier for England, he doesn’t blame regulation for his situation.

“It’s not the regulations, it’s the big players in the industry.”

Under current regulatory policy, gasoline retailers can set gas prices between a minimum and maximum price. England says Superstore and Irving can afford to sell at the low end of the scale.

“To be competitive, I had to sell at that price, too, and, overall, it cut into my profit margin.”

Byron McDonald, past president of the Central Annapolis Chamber of Commerce, says he is “saddened by this turn of events.

“The competition between the two major food chains for greater market share has made the small local entrepreneur collateral damage. Economic development means growing the economic pie so there are more people participating in the economy; this competition between these giants reduces the number of businesses, thereby hurting the economy.”

Originally owned by the Stronach brothers, England’s service station has been a fixture in the community for nearly 60 years. England plans to keep up with the rust control and vehicle repair business, with a smaller staff.

“At one time, I had six employees, but, without gas, we’ll be down by half that.”

Simply closing his gas pumps won’t be the end of the story.

“If we aren’t selling gas, we may have to take out the tanks - and that costs a bundle. Finding a buyer won’t be easy either. It’s a tough business to be in.”