How to Open a Gas Station in Texas: Business Plan, Requirements, Investment, Profit, and License

Hello friends, if you are considering opening a gas station in Texas, this article is for you. In this article, we will walk you through the steps necessary to open a gas station in Texas. We will discuss state licensing requirements, starting costs, profit margins, inventory requirements, and marketing strategies. Additionally, we will provide a sample business plan for gas stations in Texas, USA. 

How to open a gas station in Texas

How much does it cost to open a gas station in Texas?

The cost to open a gas station in Texas varies depending on location. For example, in Houston, Dallas/Fort Worth, Austin, and San Antonio, it can cost upwards of $1.5 million to secure an appropriate location and build the necessary infrastructure. Rural areas and small counties may cost from $300,000 to 1 million dollars. The costs of operating a gas station also vary depending on location.  

How to Open a Gas Station in Texas
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How long does it take to build a gas station in Texas?

It can take anywhere from 4 to 6 months in Texas to build a gas station from start to finish. The process begins with land acquisition and installing the gas pump and storage tanks. Once all the necessary permits are acquired, construction can begin. The finished product should be ready for occupancy within four to six weeks.

Requirements for starting a gas station business in Texas

To start a gas station business in Texas, you will need to meet certain requirements. The most important requirement is a valid license from the Texas Department of Licensing and Regulation (TDLR). Other Texas gas station business requirements include having premises that meet state fire safety and health codes, adequate fuel storage, and the necessary equipment and supplies to run the business. You must also meet several other requirements depending on the type of gas station you plan to open. For example, if you plan to open a convenience store, you must have a state license to sell alcohol.

License/permits to open and operate a gas station business in Texas

If you are interested in starting a gas station business in Texas, you must obtain a license from the Texas Commission on Environmental Quality (TCEQ). The TCEQ has a variety of licenses available for gas stations, including A license to construct a new gasoline dispensing facility. This type of license is required if your station has a capacity of more than 20,000 gallons per day (gal/day) of gasoline. 

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A license to operate a new gasoline dispensing facility. This type of license is required if your station has a capacity of more than 20,000 gal/day of gasoline. A license to continue operations under an existing dispensing facility. This type of license is required if your station has been in operation for at least two years and has not had any violations that resulted in the revocation of its prior dispensing facility license. To apply for a gas station license, you must submit an application package to the TCEQ.

The application package includes the completed application form (available online at The fee schedule (is available online at The $500 permit application fee (in addition to the regular licensing fee). An engineering study (if your proposed station is located within 1,500 feet of a public water supply or wildlife. The above-said fee numbers may change from time to time; please get in touch with the TCEQ for the exact fee and other details.

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Shell Gas Station
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How to market your gas station business in Texas?

  1. Identify your target market – To effectively market your gas station business in Texas, you must first identify your target market. This could include examining the demographics of the area you operate in and looking at consumer trends. 
  2. Develop a marketing plan – Once you have identified your target market, you must develop a marketing plan to help you reach them. This may include advertising, public relations efforts, and customer retention programs.
  3. Manage your marketing budget wisely – While marketing is an important aspect of running a gas station business, it is not free. Therefore, it is important to manage your budget wisely and ensure that every dollar is spent effectively. 
  4. Build relationships with local businesses – As a small business owner in Texas, you may want to build relationships with local businesses to get their support and endorsement for your gas station business. This could include sponsoring events or promoting your business through social media platforms like Twitter and Facebook. You can also have your website to promote your gas station business in Texas.

Conditions to buy a gas station with no money down in Texas

  1. Start by searching for a reputable dealer. Look for a dealer with a good reputation and positive reviews from customers. 
  2. Once you’ve found a dealer you want to work with, contact them and ask about their financing options. Most dealers will be willing to offer you a low-interest rate and a loan that can be paid off quickly. 
  3. Once you’ve decided on a financing option, bring along your driver’s license, proof of residency, and current credit score when meeting with the dealer. 
  4. Once you’ve finalized the purchase agreement, the dealer will need to provide you with the necessary documentation related to the sale. This includes tax documents, title documentation, and proof of insurance coverage.

Profit margin in gas station business in Texas

In Texas, the gas station business has seen a rise in profit margins in recent years. The state’s average profit margin for gas stations is now at an all-time high. This is due to various factors, including increased fuel prices and narrower product margins. This has meant that gas station operators see higher profits than ever before. While profit margins vary from station to station, the average margin in Texas is currently around 4%. This is significantly higher than the national average of 2.9%.

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Profit Margin
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One reason for this discrepancy is that Texas has relatively high fuel prices compared to other states. As a result, gas station operators can charge a higher fuel price and still make a healthy profit. Another factor contributing to the high-profit margins in Texas is the narrow product margins at gas stations. Again, this is due to the gas station industry’s competitive nature and low entry barriers. As a result, plenty of competitors are willing to offer lower prices to get a piece of the pie.

Consequently, it’s tough for any station operator to break through and achieve significant market share. But, these factors have led to exceptionally high profits for gas station operators in Texas. This is good news for consumers, as it means they’re getting good value for their money when filling up their tanks at a local convenience store.

How much does a gas station owner make per day in texas?

It all depends on the location and number of gallons sold. However, gas station owners make an average of 300$ to 500$ per day. This number varies depending on the location and size of the gas station, but on the whole, it is a pretty good wage. In some cases, owners can make upwards of $5,00 per day.

Business plan for starting a gas station in Texas

You will need a few things to write a business plan to start a Texas gas station. The first is an estimate of your costs. This includes the cost of your property, the cost of your equipment and inventory, as well as wages for your employees. Make sure to include a detailed breakdown of all expenses. Next, you will need to determine your revenue projections. This includes estimating how much you will make each month, year-over-year, and how much you will need to sustain your business.

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Business Plan
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You will also need to account for marketing expenses and any possible new regulations impacting your business. Last, it would help if you created a financial plan outlining how to bring in enough money to cover your expenses and grow your business. This includes determining how much debt you want to take on and how long it will take to pay off that debt. Finally, it would help if you also considered investing in growth opportunities for your gas station, such as adding additional pumps or upgrading your equipment.

Can a foreigner open a gas station in Texas?

In Texas, it is not illegal for a foreigner to own and operate a gas station. However, the station must meet certain state and federal regulations, and the foreigner must have a valid Texas Oil and Gas Commission license. The foreigner also must comply with all local zoning laws.

8 tips to be successful in gas station business in Texas

  1. Establish a good relationship with your customers. Make sure you are always friendly and knowledgeable about the products you sell. 
  2. Be sure to keep your store clean and well-maintained. Then, it is easier for customers to find what they are looking for and create a positive impression of your business.
  3. Utilize effective marketing strategies to attract new customers. This could include advertising, signage, or even social media presence.
  4. Keep your inventory fresh and updated at all times. This will make to find what they are looking for and reduce the chances of them becoming frustrated with your store’s selection. 
  5. Never overcharge your customers; offer fair prices on all items. This will show that you value customer loyalty and appreciate their business.
  6. Stay up-to-date on industry trends and developments so that you can make informed decisions regarding merchandising and pricing options.
  7. Ensure you have an adequate financial reserve in case of unexpected expenses or declines in sales volume. This will help you weather tough economic times without compromising the quality of your service or product offerings. 
  8. Always be prepared to support or assist your customers if needed. This can range from providing directions to solving technical problems with a product purchase – whatever might be necessary to ensure a smooth shopping experience for everyone involved.

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Gas Station
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Insurance requirement for opening a gas station in Texas

There is an insurance requirement for opening a gas station in Texas. The law requires the gas station owner to have insurance for $5 million per occurrence (this amount depends on size and location). The insurance must be continuous throughout the gas station operation and cover property damage, personal injury, and death.


In conclusion, opening a gas station in Texas can be profitable if the business is executed correctly. A new gas station operator can succeed with a strong marketing campaign and a loyal customer base. However, several factors must be considered before starting up operations, such as location, operation costs, and competition. Therefore, it is important to do your research to determine which gas station model will work best for your business. We wish you good luck in your gas station business in Texas, USA.


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