In a coaxial hose system for a gasoline dispensing system, a product delivery hose 7 is located within a vapor recovery hose 5, whereby the area between the product and vapor hoses provides a return path for vapors developed at a nozzle 3 during refueling of a vehicle 1. A pump 15 is located in a main dispenser housing 11, and operates to suck liquid fuel through a tube 8 and back into a fuel storage tank, from an area of the vapor path where such fuel may accumulate due to backflow from the nozzle 3, thereby substantially insuring a clear vapor path and more complete delivery of metered fuel.