Thinking of Buying a Service Station Business in Australia? Here Are 3 Vital Questions to Ask
The Australian fuel retailing industry generated $58.7 billion in revenue in 2025, with a modest projected annual growth of 1.1% through 2030. The industry is highly volatile, influenced by fluctuating global oil prices, the Russia–Ukraine conflict, and exchange rate movements.
While fuel remains the core product, margins on petrol and diesel are slim—often just a few cents per litre. Most profitability now comes from non-fuel retail such as convenience goods, food, and beverages. Major players like Viva Energy, United Petroleum, Ampol, and 7-Eleven dominate through acquisitions, while smaller independents face challenges.
The future of service stations will also hinge on adapting to electric vehicle (EV) adoption, with many operators investing in EV charging infrastructure and alternative fuels.
1. Is the Business Profitable Beyond Fuel Sales?
Why It Matters
With fuel profit margins averaging around 2–3%, a service station’s financial health relies on strong non-fuel revenue streams. Convenience retail—including coffee, ready-made meals, and groceries—has become critical to profitability.
What to Check
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Profit breakdown – Review how much of the business’s profit comes from fuel versus non-fuel sales.
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Gross margins – Compare convenience store gross margins with industry averages, which are significantly higher than fuel.
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Supplier contracts – Assess pricing and supply agreements for both fuel and retail stock.
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Ancillary services – Check for additional income from car washes, ATMs, and gas bottle exchanges.
2. Is the Location and Brand Positioning Strong?
Why It Matters
Consumer behaviour in fuel retail is largely driven by location and price, with low brand loyalty. Stations in high-traffic areas such as highways, suburban intersections, and near airports perform best. Major brand affiliation can also improve competitiveness through stronger supply chains and loyalty programs.
What to Check
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Traffic and accessibility – Verify daily vehicle counts, site visibility, and ease of access.
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Brand network – Determine whether the station benefits from a national chain like Ampol, BP, or 7-Eleven.
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Lease and zoning – Ensure compliance with zoning rules and long-term security of site tenure.
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Competition – Assess nearby service stations and relative pricing strategies.
3. Is the Business Prepared for the Future of Fuel and Mobility?
Why It Matters
The rise of EVs and hybrids is expected to steadily erode demand for traditional fuel over the next decades. By 2050, more than half of passenger vehicles in Australia are projected to be electric or hybrid. Service stations that diversify early into EV charging, hydrogen, and alternative fuels will have a competitive edge.
What to Check
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EV readiness – Confirm whether the site has or can support EV charging stations.
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Alternative fuel plans – Investigate opportunities for hydrogen, LPG, or biofuel offerings.
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Technology adoption – Check for modern payment systems, apps, and loyalty programs that improve customer retention.
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Sustainability focus – Review whether the business aligns with government policies on emissions and renewable fuels.
Ready to Invest in a Thriving Service Station Business?
The service station industry remains a cornerstone of Australian transport, but profitability is increasingly tied to diversification, convenience retail, and readiness for the energy transition. Buyers who focus on strong locations, robust non-fuel sales, and future-proof infrastructure will be best positioned for success.
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