How to Start a Gas Station

But before you set off, it is a must for you to acquire an expert understanding of the trade. Knowledge is a surefire way to counteract problems often associated with any start-up business endeavor.

Products of Gas Station

Gasoline and diesel are two most common types of fuel sold in any gas station. However, since the advent of environmental awareness, other gas stations deemed it fit to carry alternative fuels such as bio-diesel, hybrid fuel, hydrogen fuel, and ethanol. Other products typically sold are liquefied petroleum gas and compressed natural gas.

Premium vs. Discount

In the US, gas stations are classified into two groups: those that carry premium brands and those that carry discount brands.

Some of the more recognized premium brands are Exxon, Chevron, Texaco, Valero, BP, Citago, Shell, BP, and Sinclair. Notice that all these brands are international gasoline brands. Some local brands however are also categorized as premium. For example, Petrobras, ESSO, PENEX, and Petro-Canada.

What sets a premium gas station apart is its visibility. They have a branch in almost every corner and they make use of tall signs showcasing their familiar brand logo. They also have brighter lighting. The service they offer is top notch and they aim to provide convenience for their customers. Often, they are cleaner and more modern.

Discount brands, on the other hand, are quite smaller independent stations. Often they are considered as regional chains. Some examples of discount gas stations are Rotten Robbie, Valero, ARCO, and USA Gasoline.

Their gas prices are usually lower compared to the premium brands. This is why many buy wholesale gas from them. In terms of location and visibility, discount gas stations are few and far between. They are typically located a good distance from freeway exits and highways. Their services are not up to par with premium brands as well as their technology.

The A-B-C’s

A - Begin by finding an ideal location for your gas station. The best way to go is setting it up in a high traffic area. You may seek the assistance of local realtors. The usually know more about sale listings. Once you have viewed the property and it has passed your criteria, commit to it.

B - After you have secured a location, you can now focus your attention to finding a good source for your product. Talk to as many oil company representatives as you can. This will enable you to compare rates. Upon finding the best deal, have a solicitor review the contract for you. Caution must be observed on the legal aspects of the deal.

Get in touch with the local state agencies and file all the mandatory paperwork such as license and permits. Also, get in touch with the local fire department and find out what their requirements are and make sure your gas station meets these requirements.

C - Create a working business plan. Make sure you include a provision on monitoring cash flow. Also, include marketing techniques to promote your gas station.

1. ADRENA on 7/6/2008

THIS IS USEFUL INFORMATION. I AM LOOKING TO START ONE OR MORE IN MY LOCAL AREA AND BEYOND.

2. Howard Batchelor on 9/15/2008

I am looking to start a gas station in the near future and would like information on how to start one up.

3. Chris on 9/19/2008

Thanks a lot for the information

4. Dismas Chombo on 9/30/2008

Thanks a lot for the insight. I intend to open up one but didn't know where to get the relevant information about it. You know some of these things are not taught in schools Big up.

5. Dismas Chombo on 9/30/2008

Thanks a lot for the insight. I intend to open up one but didn't know where to get the relevant information about it. You know some of these things are not taught in schools Big up for the free information where I didn't have to submit my credit card number.

6. Zaldy Calica on 1/29/2009 12:42:49 PM

I am trying to set-up my own gas station, and i choose an area near the school and along the highway, the vicinity area are rice land and most people jobs are farmers and government employees, motorcycles are the most popular transportation, and along the highway buses and trucks passes by,is this possible area? i would like to know some good information.

7. Esther Aboagye on 2/23/2009 3:49:30 AM

Am looking forward to start a gas station and I need to put a business plan together to obtain a loan from the bank. please send me information to enable me put this together.

8. Suresh KUMAR on 4/8/2009 3:36:09 AM

Am looking forward to start a gas station and I need to put a business plan together to obtain a loan from the bank. please send me information to enable me put this together.

9. manish asati on 5/3/2009 8:44:18 AM

i am looking forward to start a gas station & need to put a business plan together to obtain a loan from the bank. please send me information to enable me put this together.

10. Sicmea on 5/7/2009 12:01:53 PM

I am looking to start a gas station in Africa

11. nic on 5/7/2009 12:17:48 PM

Am looking forward to start a gas station soon and I need to put a business plan together please send me information to enable me put this together.

12. Romeo Despojo on 5/10/2009 5:12:36 AM

I want to put up a business in gasoline station please give me more info.. thanks

13. oteng on 5/14/2009 2:39:05 AM

i want to start a petrol station but i don't know where to start. how do i write a petrol station business plan?

14. Austin Floyd on 5/15/2009 2:12:41 PM

I want to put up pumps at my grocery store but I have no Idea who to talk to about getting it done. what is needed and the price of the project. can you help me?

15. Jarvis Thompson on 5/16/2009 2:16:18 AM

I am looking to start a gas station and need some information on getting started with prices for the project.

16. kagiso on 5/26/2009 10:40:03 AM

i am looking forward to start a gas station in Botswana & need to put a business plan together to obtain a loan from the bank. please send me information to enable me put this together.

17. Lizzy van Rooyen on 6/7/2009 2:18:42 PM

I am a botswana citizen, and would like some information on how to start a gas station in botswana, if I have a investor from rsa, as a partner

18. Jean Calitz on 6/29/2009 11:01:22 PM

I would like to start a gas station, I am in need of prices for the project and a business plan for a gas station.

19. Rudzani Muladi on 7/13/2009 10:40:08 AM

I am looking forward to start gas station in my area, could you please help me with information on how to start and how much it can cost me.

20. George Owako on 7/22/2009 2:29:21 AM

I am a kenyan and would like information on how to start a small gas station.

21. Ahmed on 7/22/2009 6:10:45 AM

Thanks a lot, I am looking to start a gas station, really I want your information about how much will it cost, and how can I contact with the oil companies?

22. Amin Sh. Elmi on 7/23/2009 2:15:46 PM

Hi everyone, I am looking to start a gas station in the near future in Somalia and would like to get more information on how to start one up and how much it costs. My email is: amin_shikh1@yahoo.com and contact number is: +252-1-5922225

23. zack on 8/3/2009 9:44:19 PM

I am looking to open a Gas station, and I need information to help me do my own business. Could you send me all the the requirements. Thank you

24. Althario Rolle on 8/4/2009 7:33:51 PM

i intend to open a gas station in the near future and i need information on the equipment needed and any certifications needed. Thanks a million

25. Orlando on 8/5/2009 7:07:32 PM

hi, i gonna start a small business, its a gas station but the pumps don't work:( and to replace them it would cost $150,000. i believe i wanted to know if big companies would put their pumps at my location er..?? how that would work...or if i'm just gonna have to settle for the grocery store..

26. Marilyn Lucas on 8/7/2009 9:26:01 AM

My husband and I want to start a small rural convenience store/ gas station. This is all new to us and we need to know how at least approx. how much money we will need to start and run the gas station part of the business. Our bank wants us to get this info, but haven't been able to get too much info from some of the suppliers in our area. Can you give us any info. All our gas and diesel will be above ground and non-branded is what we are looking for. Does anyone supply everything except the gas? Do you know about what we are looking at in price? Thank you.

27. Mongezi Sgudla on 8/15/2009 11:03:22 AM

I am a 18 year old wits university student, i am intending to open a petrol station, like Sasol garage in the near future. What is the minimum capital needed in order to start one?

28. Bertha on 8/20/2009 9:41:55 AM

Hey, my names Bertha and i'm using by bosses computer to type this. i want start up my own petrol station so can you give me start up costs please? i'm getting a loan from the bank! thanking you kindly, lots of love. Bertha

29. Tyler on 8/25/2009 1:03:18 AM

I own a construction company and i've always wanted to build and own gas station car wash i would like to see if you can point me into the right direction? Thank you

30. TIISETSO JULIAN MOTHEKHE on 8/25/2009 4:04:57 AM

Hi, my name is Tiisetso. i want to own petrol/gas station in Cape Town Mandalay and i think i have found a location to set up shop, but now i want an in depth understanding on the financial structure to start up this project.

31. nipunsawhney on 8/27/2009 6:05:11 AM

want to establish filling station in jammu.

32. marcus on 8/28/2009 4:05:07 PM

I am looking forward to start a gas station business and I need to put a business plan together to get a loan from the bank. please give me as much info as you can.

33. Emeka Akpatulu on 8/30/2009 9:46:43 PM

It is my wish to start a gas station and I need to put a business plan together to obtain a loan from the bank. please send me information to enable me put this together. Also, I have a site in mind but I need how to obtain information to acquire the site. Also I want to know is there people willing to sell their gas station.

34. Nazlie on 8/31/2009 6:24:40 AM

i am wanting to start a gas station, i would like to know how to start and i would need to get started and how much money i will need for it.

35. James on 8/31/2009 8:11:14 AM

@Emeka Akpatulu, It is better that you prepare a business plan for your business. It is not wise to produce a sample business plan to your banker for loan. Most likely you will not get the loan. There are tons of existing gas stations are selling already. If you are interested to buy then go to www.bizbuysell.com

36. riaz on 9/12/2009 6:02:47 AM

give the complete information for the starting of a good gas station.

37. Kim on 9/16/2009 8:41:48 PM

I would like to build a gas station and C-store on my commercial land. I don't know how to start. Please give me information for it.

38. De Andre Richie on 9/17/2009 10:31:23 AM

Hello i'm looking to opening a gas station and would like more information on how to get one started. I have located a site and need information on obtaining the site and getting the money needed to have station built. Thank you for your help.

39. Gwen Maphike on 9/25/2009 8:14:55 AM

My Name is Gwen Maphike and I am from the Northern Cape in Kimbeley. I have located a site back at home for me to build my new gas station. I Need advice on how to get started, from business plans, finance and the essential companies to contact to make my business a success. Thank you and hope you find all to be in order.

40. Rajkumar Sablani on 9/25/2009 5:27:43 PM

I am a Jamaican national and wish to start a gas station in Miami or Fort Lauderdale, please send me information about how to start a new gas station and how to choose a good location and find a good company to supply. Kind regards, Rajkumar Sablani

41. Cardigan Jim on 10/5/2009 6:27:13 PM

Information is too basic. OK: location, business plan, investors and/or funding, environmental & sate codes, oil reps et al. What about buying contracts on commodity exchange and delivery options? Would a CPO apply? (Commodity Pool Operator)

42. ANDILE VINCENT on 10/11/2009 3:07:12 PM

WANT TO OPEN A GAS STATION IN BFN AND I NEED ADVICE ON HOW TO GET STARTED, THE FINANCE AND WHICH COMPANIES I NEED TO CONTACT. THE SITE IS LOCATED. THANK YOU IN ADVANCE

43. FIONA KHAN on 10/15/2009 8:42:51 AM

I am quiet keen on opening a petrol station in Durban, KZN, South Africa. I require information on how to start up, business plan and the relevant requirements that needs to be met. I would really appreciate it if you could furnish me with contact details of the following garages: BP, Caltex, Engen, Sasol

44. Chantal on 10/27/2009 3:01:43 AM

We are located about halfway between Mthatha and Port st Johns. The distance between the two is 92km, and there is no filling station between the two. We are close to the tar road, and would like to either sell the land to a fuel station company or open a fuel station ourselves. Please give contact details and also contact persons for Engen, Sasol etc.

45. Lawrens on 10/29/2009 4:59:57 AM

I'm a young, ambitious lad who is keen to start up his own gas station. I live in a small town that is approximately 110 km away from Rustenburg and we do not have a gas station. I'd really appreciate it if i get advised on how to start up and who to go to for financial and legal advice. Thank you a lot.

46. andile on 10/30/2009 7:27:57 AM

i'm young business man looking to venture into petroleum business i want to know the exact requirements in opening up a petrol stations and finance arrangements

47. Arnold M. Balanay jr. on 11/6/2009 9:20:08 PM

we would like to know how much will it cost and other requirements for the putting up of gasoline station

48. shivam singla on 11/6/2009 11:56:22 PM

thanks for the free information and the good locality point is really good one. thanks

49. BRIGHT WHITE on 11/15/2009 7:44:41 AM

thanks very much for the information, ALL I WANT TO KNOW IS THE EXACT AMOUNT TO SET UP A FILLING STATION

50. Kumar on 11/17/2009 5:27:48 AM

I want to know if a foreign national can buy a gas station in America. if yes how to go about it. I am residing in India. Regards.

Restaurant Business

Small Business Ideas

Mobile Business Ideas

Starting a Gas Station

Products of Gas Station

Premium vs. Discount

The A-B-C’s

50 Responses to "How to Start a Gas Station".

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