A gas station is a business that sells gasoline, diesel and lubricants for vehicles. Gas stations meet the fuel demands of the increasing number of automobiles. Starting a gas station business can be lucrative.
Gas stations typically operate as franchised or independent stations. Franchised gas stations are owned and operated under agreements with national suppliers like Exxon and Sunoco. Independent gas stations set their own fuel prices and offerings.
Franchised vs. Independent Ownership
- Franchised Gas Stations: Owned and operate under agreements with national suppliers. May offer additional perks such as loyalty programs.
- Independent Gas Stations: Set their own fuel prices and offerings.
Revenue and Profitability
Most gas stations operate on small margins, with sales of gasoline covering basic operating costs. Additional revenue streams like convenience stores and service bays improve profitability.
Investment for Launching a Gas Station
Launching a gas station requires significant upfront investment between $250,000 to $350,000 or more. Costs include:
- Land acquisition
- Station construction
- Inventory
- Equipment (pumps and underground fuel tanks)
Careful planning and site selection are critical to ensure sufficient customer demand.
Starting a gas station business has different ownership models. One model involves buying an existing gas station, while another is starting as a franchise, paying royalties to a parent company that provides support and training.
Do you want to start a gas station business? A detailed guide covering aspects like costs, licenses, market opportunity, and more can provide crucial insights. With the U.S. Energy Information and Administration predicting that crude oil production will reach 12.8 million barrels per day by 2024, the gas station business is poised for growth.