Q&A for How to Open a Gas Station

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Is it possible to start a station with a small tank?

Community Answer

Yes, it is possible, though you will have to refill it more often.

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Question

Would an old shopping center with a nice open space to add a filling station 200 meters from the road be a good spot for a gas station?

Kent Campbell

Community Answer

It could be. You need some traffic counts from surrounding intersections at various times of day, then decide what reasonable expectation you have of what percentage of passing traffic will pull in. That should give you a good idea. Gas stations are such a cutthroat competition and many are owned by the oil company. In suburban areas, a non flagged gas station will not get anywhere near the traffic of a branded station.

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Approximately how much would a diesel distribution franchise cost?

Community Answer

Based on my early research I would estimate at least $20,000 total, but it could be more or less depending on your circumstances.

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Question

Can I get startup money from the government?

Kent Campbell

Community Answer

The only government source available to most everyone is a loan from a bank that has been given a guarantee of repayment by the Small Business Administration. You should contact SBA to find a nearby Small Business Development Center. They can help you prepare to apply for a business loan, and can also help you find a bank that makes SBA guaranteed loans.

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Question

How much would a gas station cost, approximately?

Community Answer

$250,000 for land, another $250,00 for equipment, and around $30,000 for stock. This depends on the location and is a low estimate, but probably enough to get started. Oil companies sometimes front quite a bit to get you started for a 5- or 10-year contract.

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