How Much Do Gas Station Owners Make?

Gas stations always seem to be busy, but is the cost of owning one of these businesses worth it? We take a look at how much gas station owners make, which factors affect profits, and things to watch out for if you decide to buy or open a new gas station.

Key Takeaways

• Gas station owner income varies widely by region, competition, and the number of locations owned, with average salaries in the $60-70,000 region.

• Fuel generates most revenue but delivers very thin margins, making convenience store sales the main profit driver.

• Expanding revenue streams like car washes, food service, lottery, and EV charging can significantly boost profitability.

• Location, gas prices, and credit card processing fees are among the biggest factors affecting net profit.

• Franchise stations offer brand support and structure, while independent stations provide greater flexibility and control.

• The future of gas stations lies in diversification, blending fuel, retail, food, and EV services to stay competitive.

Gas Station Owner Salary Overview

The average annual salary of gas station owners can vary widely depending on which part of the country you’re in.

For gas station owners in the Northeast, you could expect to earn an average of around $69,000 per year. If your station is in the West, you’re more likely to make around $60,000 annually on average. 

Gas station owners in the Midwest could earn around $61,000 on average annually, while operating a gas station in the South could earn you around $66,000 on average per year.

Of course, this amount will be affected by whether you own one station or many, how many other gas stations you’re competing with, the amount you’re able to charge for gas and remain competitive, and how many additional services and amenities you offer.

Some factors affecting profit are easy to spot, while others may catch you by surprise.

Gas Station Revenue Breakdown

One of the biggest surprises for unprepared new owners is how gas stations actually make their money. While fuel sales often drive the most revenue, typically around 60–70% of total sales, the profit margin on gasoline is razor-thin, often as little as $0.03 per gallon after costs like taxes, transport, and processing fees.

In contrast, convenience store sales, coming from snacks, drinks, alcohol and tobacco, usually account for about 30–40% of revenue but contribute the greater portion of profits. That’s because in-store items generally carry much higher markups (often 25–50% or more), making them the true engine of profitability even if the bill is far smaller.

What this suggests is that while the fuel brings customers to the station, it's the higher-margin products that actually keep the doors open. That's why so many gas stations use the pricing of fuel to attract customers, and then profit from secondary and impulse purchases they make when they come in to pay for the gas.

Gas station owners tend to know that a diversified revenue stream is key to boosting not just revenue, but profitability. So let's take a look at the different services gas stations can make money from!

Expanding Revenue Streams

Because fuel margins are so slim, the most successful gas station owners focus on expanding revenue streams beyond the pump. Adding complementary services significantly increases both average transaction value and overall profitability.

Car washes

A car wash is arguably the most intuitive and natural companion to a gas station, and is commonly seen in suburban and high-traffic gas station locations.

Depending on the type of car wash you opt for, installation costs can be significant. However, once installed, the low labor costs can make maintenance easy enough, allowing the car wash to generate steady profits for the business.

Food services

From highway gas stations to those located on and around commuter routes, or anywhere else, the convenience of grabbing a bite to eat during a natural pause in the journey makes adding a food service to your gas station a great idea!

Whether it's an independently prepared service counter or a branded franchise, food items tend to offer some of the highest profit margins a gas station can see, and if they get customers to stick around longer, can have a great impact on the other revenue streams.

Convenience store products

From alcohol, to tobacco, to snack foods, groceries and fresh foods, newspapers and local items, turning your gas station into a good size convenience store can be key. It boosts footfall, and tends to be the source of most gas stations main profits.

Most convenience store products have stronger profit margins than gas, and most visits to a gas station result in subsidiary purchases from the convenience store, making it a must-have for any gas station.

Lottery tickets

Lottery ticket profit margins are minimal, but offering them as a service can be another way a gas station drives footfall. If someone driving by knows they can get their lottery ticket from your gas station, it may be the difference between them stopping with you instead of your competitor. Plus, once they step in to pay for their gas and lottery ticket (when they're already buying two products from you), they're just as likely to make further purchases, demonstrating the importance of diversifying your services!

Other services gas stations can have:

• Package pickup lockers
• Air pumps
• EV charging stations
• ATM

Choosing which services to offer

Of course, some of these amenities will cost you a lot more to offer than others and may not make much sense for your location. 

For example, a full restaurant will require wait staff, cooks, maintenance/cleaning staff, and an accountant or bookkeeper, at the very least. That’s not even counting the costs for regular food supplies, cooking supplies, and serving ware.

If your gas station is located on a busy city intersection, it probably won’t make much sense to provide a restaurant for customers; but if you’re on a busy highway with few nearby dining options available to travelers, then adding a restaurant could be a great idea.

It’s really up to you to determine how many bells and whistles you’d like to add to your humble gas station, whether it becomes a convenience store selling snacks and bottled beverages, or whether it’s a full-on travel plaza with a restaurant (or two).

Factors That Affect Profit

Every industry has expenses unique to that specific field, and some fees and operating expenses are the same regardless of the type of business you own. We break down some of the biggest profit-eaters for gas station owners below.

Location

The address of your prospective business may be one of the most important factors to take into consideration when deciding whether to own a gas station. Of course, if you’re in a location far away from busy roads, you’ll have a harder time getting customers to stop by.

But there are other issues with location besides just traffic. If you’re located in an area with plenty of free or low-cost reliable public transportation, you may struggle to generate profits since people are less likely to drive a car in that scenario.

You may also end up paying higher business taxes [2] in some locations than you would in others.

Another factor to consider when it comes to choosing a location is where your competition is located. While having a rival gas station directly across the street from you could benefit both businesses, having too many competitors around could harm your revenue. 

Credit Card Processing Fees

While not unique to gas station owners, credit card fees are rarely thought about ahead of time. Usually, the realization that processing fees are eating into your profits only comes when you review your bank statements.

Payment processing fees can fluctuate between 1.7% and 3.5% per transaction [3]. On a $100 fill-up, gas station owners could pay $3.50 plus another small fee. Depending on how much profit you bring in every year, this could be either a small annoyance or a massive expense. 

Do your homework in the beginning, so you understand how much each of the major credit card companies will charge you for the privilege of accepting credit card payments.

Gas Prices

While most people only think of the price at the pump when they think of “gas prices,” gas station owners have to purchase gasoline, too. And your cost is generally based on refining costs, distribution costs, and crude oil prices. 

Surprisingly, the cost of crude oil only accounts for around 52% of the price of gasoline [4], so while it’s easy to blame “big oil,” they’re not the only ones who affect gas prices.

You may also be charged state or local underground storage fees to store all that fuel, which also affects how many cents per gallon you can charge your customers.

Unfortunately, all of these factors are beyond your control, and you can only charge so much for gas and have customers come back to your station. Because fuel profit margins are so tight, it’s possible that you could lose money selling gasoline.

That’s why it might be a good idea to look into offering additional amenities to your gas station, so you can have more than one revenue stream available.

Franchise vs. Independent: Pros and Cons

Your financial circumstances at startup may limit your options when making your gas station business plan. But the differences between a franchised gas station and an independent operation can have a major impact on your not only your startup costs, but your profit margins and day-to-day agency over how you run your business.

Here are a few quick comparisons so you can make an informed decision about which direction to take your gas station:

Franchise Gas Station

Pros

• Brand recognition: National fuel brands attract customers who trust consistent quality and pricing.

• Supplier support: Franchises often provide established fuel supply contracts, marketing materials, and operational guidance that make running a gas station easier.

• Easier financing: Lenders may view franchise locations as lower risk due to proven business models and the support of a larger business.

Cons

• Franchise fees: Ongoing royalties, branding fees, and marketing contributions reduce net profits and limit growth.

• Limited flexibility: Pricing, promotions, and store layout are often dictated by the franchisor, reducing your freedom as a gas station owner.

• Long-term commitments: Franchise agreements can lock you in for many years with strict exit terms.

Independent Gas Station

Pros

• Greater control: You choose suppliers, pricing strategies, store layout, and product mix, acting for your business as you see fit.

• Lower ongoing fees: No franchise royalties means more retained profit, which will boost both your salary/cut and your ability to reinvest funds.

• Local branding opportunities: Independents can tailor offerings to local preferences and niche markets.

Cons

• Less brand pull: Without a known name, attracting first-time customers may be harder.

• More responsibility: You’ll manage fuel sourcing, supplier relationships, marketing, and compliance on your own.

Profit vs. Income

The question of profit versus income often trips up new business owners, who get a nasty surprise when calculating their average annual income. While your income will come out of the profit your gas station earns, so will every other expense you have during the year.

That includes things like:

• Building maintenance and repair
• Fuel costs
• Liability insurance
• Franchise fees (if applicable)
• Lease or mortgage expenses
• Business loan repayments
• Utilities
• Signage

You may have additional annual expenses, depending on the type of gas station you own.

Only after all of your expenses for the year have been deducted from your total profits will you have an accurate idea of your annual income.

Startup Costs: What You’ll Need to Budget For

Opening a gas station requires significant financial commitment, and most business owners would struggle to find the money to open one. The total investment varies wildly depending on whether you’re building new, buying an existing station, adding  secondary sources of revenue, and whether or not you affiliate with a brand.

Basic startup costs for a gas station typically ranges between the low hundreds of thousands to several million dollars.

Key One-Time Startup Expenses

• Land purchase or lease. $100,000 – $2,000,000+ depending on location and traffic.

• Construction and site development. $500,000 – $1,500,000+ for the building, canopy, forecourt, and parking.

• Fuel infrastructure. $200,000 – $800,000 for underground storage tanks, pumps, pipes, and safety systems.

• Convenience store build-out. $150,000 – $300,000 for interior fixtures, refrigeration, and shelving.

• Licenses, permits and environmental compliance. $10,000 – $50,000+ depending on local regulations.

• Initial inventory. $50,000 – $300,000 for the first fuel purchase and store stock.

• Equipment and technology . $15,000 – $50,000 for POS systems, security cameras, signage, and registers.

• Professional fees/insurance. $25,000 – $75,000 for legal services, insurance policies, and branding.

Typical Total Investment

• Small/basic station. $250,000 – $1,000,000+ with minimal services and leased land.

• Full station with a store. $1,500,000 – $3,500,000+ when built from scratch or renovated extensively.

These numbers and the logistics involved highlight why many owners explore buying an existing station rather than building new. It spreads the upfront risk and may include existing cash flow and infrastructure. Planning for working capital to cover payroll, utilities, and marketing during the first 6–12 months is also critical to avoid cash crunches as revenues ramp up.

The Future of Gas Stations

Gas stations are at a crossroads (often literally, but that's beside the point). The automotive market is shifting alongside the energy industry. Revenue projections show modest growth through the 2030s, but that only happens as the industry adapts to EV charging.

By 2030, a significant percentage of new vehicle sales are expected to be electric, so gas stations not equipped with EV charging stations will simply be losing more and more of their market. This transition presents both a challenge and an opportunity; while demand for gasoline may decline, EV chargers can draw customers. But more than that: given how long charging takes, EV users will be lingering a lot longer at gas stations, resulting in a much higher spend per customer.

Not all stations are going to survive the shift. Regions with high enough EV adoption could see station closures or repurposing of sites, particularly where fuel demand drops significantly. In the long-term, gas stations are more likely to look much more hybrid, combining fuel, EV charging, convenience retail, and food services: a diversification strategy aimed at maintaining relevance as transport trends evolve.

Stand Out in a Crowded Market

It’s not an understatement to say that there’s a gas station on nearly every street corner. So, besides offering first-rate amenities and doing a media blitz, what else can you do to stand out in the crowded gas station market?

One thing that matters now more than ever is ensuring customers have a secure payment transaction, and the best way to do that is with a robust point of sale system. Customers are far more likely to return to your store over a competitor if your payment process is smooth, simple, and secure.

Epos Now offers several secure and powerful point of sale options for business owners, including mobile point of sale options for both Android and Apple phones and tablets.

It goes without saying that Epos Now is compatible with the most popular credit cards (including Visa, MasterCard, and American Express) while also allowing customers to use Apple and Google Pay.

See why US News and World Report recently ranked Epos Now as one of the best POS providers in the country.