A family business could close because of a lack of customers and fierce competition from nearby supermarkets.

Kennington Service Station at Kennington, near Oxford, has sold petrol, new cars and repaired vehicles for 35 years.

Owner Ann Barlow opened the station on the corner of Poplar Grove and The Avenue with her late husband Ray. It started as a dealership for Lada and Reliant Robin cars, and now sells Protons.

The business could be sold to developers if a planning application to demolish the service station and replace it with a three-storey block of 15 two-bedroom flats, is allowed.

Mrs Barlow said she was forced to consider selling because nearby Sainsbury's and Tesco supermarkets sold cheaper petrol. The car dealership has also suffered.

In its heyday, the business had an army of regular customers from around the county.

Mrs Barlow, who employs 14 staff, said: "It's a sad event for us, but the motor trade is not what it was.

"They stopped producing the three-wheeled Reliant Robin and the Lada. Protons are going to the expensive end of the market. This affects our customer base."

Staff who have left over the past year have not been replaced. Some forecourt staff have devoted more than 30 years to the Barlow business and four will retire this summer.

"They have been very loyal, dedicated staff. To get such good workers is very difficult now.

"I felt the time has come to accept that the market is not what it was. Villagers are not using the service station as much."

Mrs Barlow said the station now sells only a third of the petrol it did ten years ago.

She has no plans for the future but, if planners refuse permission to demolish the station, she said she might struggle on with the business, as it would be hard to sell.

She added: "It's not a matter of fact yet. As far as our customers are concerned we are still up and running. It's early days in the planning process. Until that is complete, we are still open."

Kennington Parish Council has objected to the planning application. Parish clerk George Ross said: "It is another blow to Kennington. It has always been useful to have this station in the village. Tall flats are quite out of keeping with a village environment."

Vale of White Horse District Council planning officer Mike Gilbert said there were no legal limits to how high a building could be placed in that area of Kennington. No date has been set for the application to be heard.

The station is near The Scholar Gypsy Pub, which is to make way for new houses despite opposition from villagers.