As Singapore steadily transitions towards electric vehicles (EVs), the landscape of petrol stations across the island is evolving.
Once purely utilitarian stops for fueling cars, these stations are now transforming into multi-purpose hubs offering a wide range of services, from food and beverages to EV charging points.
This shift raises an intriguing question: Will these new offerings at petrol kiosks be enough to sustain consumer interest as demand for petrol dwindles?
A Declining Demand for Petrol
Over the past two decades, the number of petrol stations in Singapore has decreased significantly, reflecting a broader global trend.
According to recent reports, there are now 184 petrol stations across the country, down from 222 in 2003—a 17.1% drop. This decline can be largely attributed to advancements in automotive technology, leading to more fuel-efficient vehicles and the increasing popularity of EVs.
Data from the Land Transport Authority (LTA) reveals that the average annual mileage of cars has decreased by 19.3% from 2003 to 2023.
Simultaneously, newer cars like the hybrid Toyota Camry use significantly less fuel than older models.
With more Singaporeans opting for hybrids and EVs—14% of the total car population in 2023 consisted of petrol-electric hybrid cars or fully electric cars—the demand for petrol is undeniably on the wane.
Adapting to the Times: The Evolution of Petrol Stations
In response to these changes, petrol stations in Singapore are diversifying their offerings, transforming from mere fueling stations into retail and food hubs.
This evolution is not just a response to the declining demand for petrol, but also an attempt to attract a new demographic of customers, including EV drivers and local residents.
The introduction of Shell Cafes serving barista-style coffee and food is part of their strategy to enhance the overall customer experience.
Esso stations have also joined the trend, partnering with FairPrice Group to operate convenience stores that now account for a significant portion of their business. In some locations, such as the Esso station at Toa Payoh Lorong 2, innovative options like a Maki-San takeaway sushi counter have been introduced, catering not just to drivers but also to nearby residents.
These retail services are gaining importance, particularly in landed housing estates with limited retail options. In such areas, petrol stations play a more significant role in providing essential services to the local community.
A New Role for Petrol Stations
As petrol stations increasingly resemble convenience hubs, the role they play in Singapore’s urban landscape is evolving. Market forces will determine how they continue to develop, particularly as the country moves closer to a future where EVs dominate the roads.
In a report by the Straits Times, according to Associate Professor Walter Edgar Theseira, a transport economist from the Singapore University of Social Sciences, the viability of petrol stations in their new form will ultimately depend on consumer demand. If there is an excess capacity of petrol stations, this will become evident through a lack of interest in bidding for leases.
However, for now, these new offerings seem to be a strategic move to keep petrol stations relevant in an era of declining fuel consumption. Whether it’s grabbing a quick sushi roll or enjoying a cup of kaya toast and coffee while your EV charges, these revamped stations are clearly trying to appeal to a broader customer base.
The Road Ahead
As Singapore’s automotive landscape continues to evolve, it remains to be seen how successful these petrol stations will be in retaining their relevance.
The trend of adding diverse retail options may well be a critical factor in their survival, offering convenience to motorists and locals alike.
However, the question remains: Will these innovations be enough to keep these stations thriving in the long run? Or will they eventually become relics of a bygone era?
As the demand for petrol continues to decline and EVs become more mainstream, only time will tell whether these petrol stations can successfully transition into the multi-purpose hubs they aspire to be. For now, at least, they offer a new kind of pit stop on Singapore’s roads—one that’s as much about the journey as it is about the destination.
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