Gas stations have been really profitable in the past. In fact, they have been thought of as a sure-shot way of making money.
However, with the globally changing dynamics, the future might be much different for such gas stations who might have already lived their best days.
With the growing EV demand and the need to keep EVs regularly charged, the EV charging stations are now seeing a mushroom growth not just in Europe but worldwide.
The recent claim by bp (British Petroleum) which is one of the giants in the segment, is that fast charging EVs is more profitable for the company as it has better business fundamentals than the fossil fuel segment.
Such bold claims by the company are backed by proof as bp saw a 45% increase in its EV charging segment during just a single quarter of the last year.
Reasons Why EV Chargers Are Better Than Gas Stations
Conventional vehicles use fossil fuels for running. So when these fuels run out, people have to visit a gas station to get their vehicles refilled.
However, the newer EV charging technology offers a multitude of benefits when compared to the conventional gas stations and here are a few of them:
No Extraction/ Refining Required
The fossil fuel needs to be extracted and then refined for onward use by internal combustion engine vehicles.
This means that the supply of this type of fuel is always limited when compared to that of electricity.
No Routine Transportation Is Required
While the gas stations require a constant input of fuels through oil tankers, the fast chargers have no such need.
Not dependent Upon External Sources
The movement of oil tankers is largely dependent upon the road conditions. Thus, the supply chain is badly affected in case of fog or snow, electric fast chargers have no such limitations.
More Environment Friendly
The fast chargers offer EV charging setups which result in a platform that is overall extremely safe for the environment.
Safer For The Surroundings
The gas stations have a high risk of catching fire due to their inflammable nature. This is why they are not safe for their surroundings as well. Fast chargers offer no such threat and are extremely safe to operate.
Major Changes In Business Dynamics Of Giants
Giants of the gasoline segment including Shell and bp are now undertaking EV technology as a great aid in boosting up their profits.
Previously, the businesses and the profits of such companies were at huge risks due to the flourishing EV segment.
However, these companies decided to change their business model and diversify their lines by offering chargers to the drivers of electric vehicles.
bp is already leading from the front with its 11,000 chargers but the company is still not taking a break and wants to push the number to as high as 70,000 within the next few years.
A watershed moment for BP took place in 2018 when the multi-billion dollar mammoth invested in an Israeli EV fast-charging setup known as StoreDot.
How Is The European Market Responding?
The switch to EVs in Europe is years ahead of that in the US and most parts of Asia.
The reason is that many European governments have gone as far as imposing a carbon tax on the sale of gasoline which is likely to push the prices upwards.
This means that gasoline companies will have to reduce their profits if they need to stay as a viable option in a market which is already on the verge of a massive change.
bp and Shell are playing a vital role in establishing an EV charger setup in Europe and the number of fast chargers per 100 kilometers is much higher than what it was just a couple of years ago.
Final Verdict
The automotive world is undergoing drastic changes and oil companies will take the biggest hits if they don’t change their line of operations.
It remains to be seen what the future has to offer, however, for now, all of these giants seem to be performing well and their massive plans of increasing the fast charging platforms exemplify the multifaceted benefits that such companies are deriving from the booming EV segment.
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