The number of gas stations is shrinking quickly. Part of the reason is declining profits. Recent declines in gas prices, in particular, are hurting locally owned gas stations.

Gas prices, after spiking upwards, have now declined for 30 consecutive days, per Gasbuddy. That's good news for drivers, but terrible news for gas-station owners.

  • The pattern of a sharp rise and then slow fall in gas prices is the worst possible dynamic for such businesses.

How it works: "Stations tend to hold back price increases to hold onto customers," said Jeff Lenard of NACS, the trade association for convenience stores.

  • As the WSJ explains, when the gas station refills its own tanks, it buys weeks' worth of fuel — sometimes months' worth, in the case of diesel — at a single high price.

  • If prices then start to fall, the gas station is forced to sell at below its own cost.

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