Public Choice at the Pump: How Politicians Banned Self-Serve Gas for Years

America runs on gas stations. The US has more gas stations than any other country in the world, around 196,000. These rest stops and corner pumps supply the country with the gas it needs for its commerce and road trips.

Advertisement

Not only do they fuel the wheels of the American economy, they have also been an icon in American culture. To the average person, the legal history of filling stations might seem boring, even pointless. But to the trained eye, the history of gas stations reveals a political economy shaped by public-private collusion, cronyism, and even violent attempts to eliminate competition.

Self-service laws, statutes that prevent customers from pumping their own gas, are almost obsolete in 2025. In fact, only one state, New Jersey, has this law on its books. For years, Oregon and New Jersey were the last remaining states to have self-service laws on the books, but the Oregon Legislature repealed them in 2023.

While it may seem strange to some readers, the concept of self-service was not always the historical norm. In 1905, the first gas station was opened in St. Louis, Missouri. Fifteen years later, the United States experienced a boom in gas station construction, with roughly 20,000 service stations operating by 1920. Full-service stations, where an employee of the gas station pumps gas for the customer, were originally the norm. The concept of self-service did not emerge until the 1930s, and because of bans, self-service stations did not become widespread until the 1960s. But why was that the case? Simply put: the history of self-service laws is a history of rent seeking.

Advertisement

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement