How Much Does a Gas Station Owner Make? Key Facts to Know

Thinking about owning a gas station? It can be a solid business, but success takes a well-thought-out strategy. Profit doesn’t come from fuel alone. Location, costs, and daily operations all play a role in how much a gas station can earn. In this guide, we’ll break down the key facts to help you understand what goes into making gas station ownership work. 

HOW MUCH DOES A GAS STATION OWNER MAKE? 

Gas station owner salaries in the U.S. typically range between $40,000 and $100,000 annually. However, figures can differ significantly based on the business model, operating costs, and market conditions.

Income is shaped by what the business earns on each sale and how well it’s managed overall. Some owners operate under major franchises with built-in support. Meanwhile, others run independently with more freedom, but also more responsibility.

Location plays a big role, too. Stations in high-traffic areas generally see more volume than those in quiet or rural locations. 

While rising gas prices might seem like a positive, they don’t always lead to higher profits. like a good thing Costs, competition, and changing consumer habits can quickly cut into earnings. 

PROFIT MARGINS ON FUEL SALES 

Fuel generates revenue but doesn’t necessarily contribute to significant profit. Most gas stations in the U.S. earn under 2% net margins on fuel sales. That makes fuel one of the lowest-margin products they sell. 

Even the big players face the same challenge. Alimentation Couche-Tard, which owns thousands of stations across North America, earns just over $0.47 per gallon gross margins in the U.S. 

Still, fuel generates large sales volumes. In recent years, gasoline station sales in the U.S. topped $654 billion. But because profit margins are so slim, owners must find other ways to make their business profitable. 

FACTORS THAT AFFECT A GAS STATION OWNER’S INCOME  

Several key factors aside from gas prices can affect profits. Some are within your control, while others are not. Let’s explore what you need to consider. 

LOCATION & MARKET DEMAND 

Your station’s location can boost or hurt your revenue. Busy roads bring more drivers and more chances to sell fuel, among various products. As a result, stations near major highways often get steady traffic from commuters and travelers. 

In quieter areas, sales can be slower. However, you’ll need to rely more on local loyalty and smart pricing to turn a profit. Other factors that affect demand include: 

• Proximity to Competitors: If a nearby station offers lower prices or better services, it can deter customers away from your business. 
• Nearby Businesses or Housing: Being close to offices, apartment complexes, or shopping centers can boost daily traffic. 
• Seasonal Trends: Tourist-heavy areas may see spikes in summer and dips in winter. 

Key Takeaway: The more visible, convenient, and accessible your station is, the more potential you have to grow revenue.

GAS STATION OWNERSHIP MODEL 

There are two main ways to own and operate a gas station: independently or through a franchise. Each model comes with different levels of control, costs, and earning potential.

INDEPENDENT STATIONS 

For independent stations, you run the business as your own brand. That means full control over fuel suppliers, pricing, store layout, and operations. But that freedom also comes with responsibility and potentially higher costs. 

Your fuel supplier contract can make or break your margins. Some independents sign long-term agreements with major oil companies, which may lock them into fuel pricing structures. Others source fuel from unbranded wholesalers. This can offer more flexible pricing but less brand recognition. 

Without corporate support, independents must also handle their own: 

• Marketing and promotions. 
• Equipment maintenance and upgrades. 
• Compliance and insurance. 
• Inventory and supplier negotiations. 

Key Takeaway: It’s higher risk, but there’s also more potential reward. 

FRANCHISED STATIONS 

Franchisees operate under a major brand like Shell, Chevron, or BP. The brand name can help attract customers, and the franchisor often provides access to national marketing resources, established supply chains, and support services. 

But there’s a trade-off: 

• You’ll likely need to follow strict rules regarding branding, fuel pricing, and store operations. 
• Supplier contracts are often non-negotiable, which limits your ability to shop for better rates. 
• Some franchisors take a percentage of revenue or charge ongoing fees. 

Key Takeaway: Many owners choose this model for the lower learning curve and built-in support. 

BUYING VS. LEASING 

There’s also the debate between buying vs. leasing. Buying gives you more control and builds equity over time, but it comes with a higher upfront cost. Leasing lowers the barrier to entry. However, you may have limits on what you can change or upgrade, and long-term costs can add up. The right model depends on your budget, risk tolerance, and how hands-on you want to be. 

5 ADDITIONAL REVENUE STREAMS 

Fuel brings in traffic, but it’s the extra revenue streams that often drive real profit. Here’s how gas station owners boost income: 

1. Convenience Store Sales: Snacks, drinks, and everyday essentials have much higher profit margins than fuel. Even small purchases add up fast when foot traffic is steady. 
2. Lottery and ATM Fees: Lottery ticket sales can bring in bonus commissions from the state. Meanwhile, ATMs generate surcharge fees with little maintenance or staffing needed. 
3. Car Wash Services: A car wash can run 24/7, even when the store is closed. It’s a great way to earn passive income with relatively low overhead costs. 
4. Repair and Maintenance Services: Offering oil changes, tire checks, or quick fixes can turn your station into a one-stop shop. They also build customer loyalty. 
5. Food and Beverage Partnerships: Hosting a fast-food counter, coffee chain, or local bakery inside your store increases both sales and foot traffic. It creates a win-win situation. 

Adding any of these revenue streams can help balance out low fuel margins and make your station more competitive. Give them a shot! 

OPERATING COSTS & EXPENSES 

Running a gas station requires good financing. Even with strong sales, your profitability depends on how well you manage your costs. Here are the four major expenses that impact your bottom line:

1. Fuel Supply Costs: Wholesale fuel prices change constantly. When prices spike, your margins shrink. It’s even harder to work around if you can’t pass costs onto customers. 
2. Staff Wages: Hiring reliable employees to run the store, manage inventory, and handle customers adds up. Payroll is often one of the largest recurring expenses. 
3. Licensing, Insurance, and Compliance: You'll need permits to sell fuel, food, tobacco, or alcohol, depending on what you offer. On top of that, liability and property insurance are essential. Failing to meet safety or environmental rules can lead to costly fines. 
4. Maintenance and Equipment: Fuel pumps, car wash systems, HVAC units, and POS systems all need regular servicing. Breakdowns can interrupt your ability to generate revenue. 

HOW TO INCREASE GAS STATION PROFITABILITY  

Small changes can lead to bigger profits. Focus on revenue drivers and where you can cut unnecessary costs. 

MAXIMIZING CONVENIENCE STORE SALES 

Stock high-margin items like drinks, snacks, and cigarettes. They sell fast and bring strong returns. Consider using smart promotions to encourage impulse buys at the counter. Think limited-time offers, bundle deals, and eye-catching displays. 

Your staff can also make an impact. Train them to upsell combo deals, suggest add-ons, or highlight new products during checkout. A good loyalty program is another way to keep customers coming back. The goal is to increase the value of each visit, not just foot traffic. 

OPTIMIZING FUEL PRICING & SUPPLY MANAGEMENT 

Fuel prices fluctuate, and pricing decisions can significantly affect margins. Set competitive rates that attract those behind the wheel without cutting too deep into profits.

Work closely with suppliers to negotiate better deals or flexible terms. If you're locked into a contract, review it regularly. There may still be room to adjust. 

Loyalty cards and fuel discounts can also help build repeat business while protecting your margins. The goal is to stay competitive without sacrificing too much revenue per gallon. 

INVESTING IN ADDITIONAL SERVICES 

Extra services can turn occasional customers into loyal ones and increase profits. Adding EV charging stations helps future-proof your business as more drivers go electric. 

Partner with well-known food or coffee brands to increase foot traffic and make your location a daily stop. You can also expand with car wash or maintenance services to bring in steady, year-round income. These upgrades take planning, but they often lead to higher revenue and stronger long-term growth. 

FREQUENTLY ASKED QUESTIONS ABOUT GAS STATION OWNER INCOME 

Wondering what else impacts gas station income? These quick answers clear up common questions about ownership, earnings, and business decisions. 

How profitable is owning a gas station? 

The profitability of owning a gas station depends on where the station is, how it’s run, and what extra services it offers. Most owners earn between $40,000 and $100,000 a year in salary. Profit margins on fuel are low, so success often comes from convenience store sales and other services. 

How much money do you need to own a gas station? 

Startup costs for a gas station vary widely. Buying a station can cost anywhere from $250,000 to $2 million or more. Leasing is cheaper upfront but may include restrictions and ongoing fees. Extra funds are also needed for inventory, permits, and staffing. 

Is leasing a gas station profitable? 

It can be profitable to lease a gas station, especially if the location has high traffic and strong sales. Leasing lowers the startup costs. However, lease terms can affect what changes you’re allowed to make and how much control you have over operations. 

Do gas station owners set their own prices? 

Independent gas station owners usually set their own prices. They can adjust fuel prices based on market trends and local competition. Franchise owners often have less flexibility because prices are set or influenced by supplier contracts or brand rules. 

What's the fuel markup at gas stations?  

The fuel markup at gas stations is very low. Most U.S. stations earn under 2% net profit on fuel. Even major operators like Alimentation Couche-Tard report gross margins of just over $0.47 per gallon per gallon in gross margins the U.S. 

FINAL THOUGHTS: IS OWNING A GAS STATION WORTH IT?  

Owning a gas station can be profitable, but it’s not a passive investment. Success depends on smart planning, a good location, and careful cost control. Fuel sales help drive traffic, but long-term income usually comes from convenience store sales and added services. With the right strategy, it can be a steady and rewarding business. 

Want to boost revenue with smarter digital tools? Explore How to Choose the Right Loyalty Program.