Running a gas station is a lucrative business opportunity, but establishing, managing and maintaining a gas station requires a lot of upkeep. Things like automatic tank gauge system, fuel management system, petroleum tanker parts, and other fuel station equipment need to be installed to ensure your gas station is operational.
Setting up your own gas station isn’t as simple as it seems. Various factors and government regulations need to be considered in order to run a smooth business.
Gas Tax
Like any other corporate tax, the government taxes revenue generated from selling gallons of petroleum. The tax authority will either tax a certain percentage of your retail price or charge a tax-free according to the quantity of gas sold.
The gas tax might vary according to state. Visit American Petroleum Institute’s (API) website to know about the tax rate prevailing in your city.
Environmental Regulation
Handling natural resources requires care and caution. Gasses released during the refilling of tanks have a detrimental impact on the environment, which is why many states require gas pumps to install capture systems on gas nozzles to reduce the impact of fumes. Seeing these car manufacturers have pre-installed their vehicles with (ORVR) Onboard Refueling Vapor Recovery System.
The state of California and Florida require gas stations to meet strict environmental standards for underground tanks storage systems. They are subjected to mandatory inspection. In the case of a leak, the storage tanks need to be released.
Product labeling
Like other consumer products displayed on shelves, petroleum-based products also require clear identifications. Gas stations usually sell unleaded, super, or regular variants of petroleum distillates at their station. The state law requires you to clearly label these products to safeguard customer’s interest.
Grades assigned to gasoline indicate the level of alkane series, octane, and hydrocarbon present in the product. Each variant provides a certain level of engine performance; communicate the difference of product quality to all customers.
Business License
In order to run a gas station, you need an approved business license and an identification number from the federal and state authorities.
If your station is performing repairs or selling food or other goods on premises, get government approval and food permits for these activities as well. Moreover, special repair job like, smog check requires gas stations to have license and certification from the state law.
In addition to a regular business license, you are also required to get a special license, motor fuels retail outlet license, in order to sell gasoline.
For high-quality gas station equipment and supplies, get in touch with John W. Kennedy Company. We’re a one-stop shop for all your petroleum equipment and supplies need. For order placement or product/service inquiry, feel free to call us.