The Future of Gas Stations: Navigating Challenges and Embracing Opportunities

More than 97 percent of American convenience stores that sell gasoline are owned or run by independent operators. Many of these small businesses are navigating razor-thin fuel margins, volatile oil markets, and the impacts of the growing electric vehicle (EV) industry. Despite numerous challenges, they have unique opportunities to innovate and thrive in the future of gas station business.

What challenges do fuel retailers face?

For fuel retailers, the current business model of gasoline sales offers tight profit margins. The net profit per gallon is about 1% of the pump price — only a few cents per gallon after paying for wholesale fuel, labor, utilities, and card fees.

The oil market’s volatility further complicates the situation so that it’s harder for gas station owners to recover costs during low-margin periods, tightening their already slim profits. This leads businesses to heavily depend on in-store sales to stay afloat. As EV use accelerates, analysts report that fuel profits could fall by up to 60%. In markets where EVs dominate, up to one quarter of service stations may be unprofitable and forced to close by 2035 if they don’t evolve.

In spite of these obstacles, the growth of electric vehicle (EV) adoption presents a meaningful opportunity for fuel retailers to innovate and achieve a successful future of gas stations with electric cars.

What is the Future of Gas Stations?

Despite a gloomy outlook for traditional fuel sales, gas stations have a clear chance to transform. By diversifying beyond gasoline and investing in EV charging, fuel retailers can introduce new revenue streams while continuing to serve drivers where they already stop. EV charging allows retailers to remain relevant as vehicle technology changes, while also improving the customer experience.

For drivers, EV charging expands fueling options and makes longer trips more feasible. For retailers, it creates opportunities to increase dwell time, drive in-store purchases, and build stronger relationships with a growing segment of customers. As electric vehicles become more popular, electrification is increasingly seen not just as a sustainability effort, but as a strategic move to protect long-term profitability.

The gas station of the future will function as a flexible mobility hub rather than a single-fuel stop. In addition to gasoline, these sites will support EV charging and possibly other alternative fuels—along with and familiar convenience stores, car washes and other services—reflecting how drivers move and refuel. As charging demand grows and dwell times increase, stations will rely on smarter, AI-driven operations, often paired with onsite solar generation or battery storage, to manage energy use, control costs, and adapt to changing customer behavior.

Now is the Best Time for Gas Stations to Electrify

The future of the gas stations includes electrification as a practical direction for many fuel retailers. A combination of the growth of EVs, supportive policy, and advancing charging technology makes now a critical moment to invest in EV charging infrastructure.

1. EV adoption is growing and displacing oil demand.

   As more drivers switch to electric vehicles, the need for convenient, reliable public charging continues to grow—particularly along highways and travel corridors where long-distance driving is common. Gas stations are already positioned in these locations, making them a natural fit for expanding charging access.

   For fuel retailers, adding EV charging is an opportunity to meet this demand while future-proofing their business. EVs are already displacing 1.7 million barrels of oil per day, equivalent to roughly three percent of global road fuel demand. As this trend accelerates, EV charging can help retailers continue serving drivers’ energy needs while opening the door to new revenue streams and longer on-site dwell times. In this way, gas stations can turn a market shift into a strategic advantage.

2. Funding is available to help offset upfront investment.

   Public funding continues to play an important role in supporting EV charging deployment across the U.S., particularly along major travel corridors. While federal and state programs continue to evolve, incentive funding remains available to help offset the upfront capital costs associated with installing EV charging infrastructure at gas stations and travel centers.

   For fuel retailers, these programs can help reduce financial risk while accelerating the addition of EV charging at strategically located sites. When combined with intentional site planning and scalable charging and energy management strategies, available funding can make electrification more accessible.

3. Technology advances are improving efficiency and profitability.

   Advances in EV charging and energy management technology are making electrification more practical and financially viable for fuel retailers. From smarter energy use to faster charging experiences, new solutions are helping address cost, grid constraints, and customer expectations. Here are two examples.

   • AI-driven smart charging and energy management
     High electricity costs remain a significant concern for fuel retailers. The amount of energy local utilities can provide is constrained by generation and transmission capabilities, making infrastructure expansion costly.Smart charging and energy management solutions are increasingly using AI-driven analytics to better align charging demand with grid conditions and energy pricing. These systems can help optimize when vehicles charge, reduce exposure to peak pricing, and make better use of available capacity. As EV adoption grows, intelligent and automated energy management will play an important role in minimizing grid impact while keeping operating costs under control.

• • Quicker fueling with better batteries and DC fast charging
    Advances in battery technology and DC fast-charging infrastructure are also reshaping the economics of public charging. DC fast charging makes EV charging more competitive with traditional fueling and more attractive for drivers on the go.Fast-charging networks are expanding rapidly in the U.S. with an increasing share of new sites co-located at fuel and convenience locations. If this growth rate continues, the U.S. will reach 100,000 fast charging ports by 2027—about double from 2024.As more fuel retailers deploy fast chargers at high-traffic sites, those that move early are better positioned to capture charging demand, in-store spending, and long-term customer loyalty.

Together, these factors make electrification a timely step for fuel retailers. To fully capture the opportunity, however, gas stations need more than chargers alone—they need the tools to manage charging operations efficiently and at scale.

EV Charging Management Platform for The Future of Gas Stations

Driivz offers a robust solution for managing EV charging networks for the smart grids of the future. While early market entrants struggle to keep pace with rapid growth and changes, Driivz is a proven platform that enables larger companies—especially existing power utilities and oil and gas firms—to deploy a unified solution to effectively manage EV charging networks at scale. Driivz has facilitated easy migration, integration, and connectivity to legacy systems; supported diverse business models; and ensured regulatory compliance across markets in Europe and East Asia to the United States.

The future of gas stations is not just about adapting to the changing energy landscape, but also about seizing the opportunities it presents. By tapping into the EV market and adopting smart EV charging management solutions like Driivz, gas station owners cannot only navigate current challenges but also secure long-term success. This shift towards sustainability opens up new avenues for growth and profitability, offering a promising future for the industry.