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Why Are Gas Stations Often Clustered Together?

Why Are Gas Stations Often Clustered Together?

Petroleum Service Company

Have you ever wondered why gas stations often seem to be found in clusters in the same part of town? The answer is simple - like most other retailers, gas stations want to be in a reasonably central position minimizing the distance consumers need to travel to reach them. All of the gas stations are using the same process to choose the right location so you will often find several competing gas stations in the same area! Occasionally one may decide to open in an area away from other gas stations in order to try to gain a monopoly, but most will follow the pattern to minimize risk.

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