How to Start a Gas Station Business in Canada

How to start a gas station in Canada: TSSA licensing in Ontario, Measurement Canada pump checks, tanks, zoning, and fuel supply.

Applies in: CA

The short answer

A gas station is three regulated businesses in one lot: a fuel retail outlet licensed by the provincial fuel safety regulator, a set of measuring devices verified by Measurement Canada, and a retail store under municipal rules. In Ontario the fuel regulator is the TSSA, and no retail outlet may operate without its licence. The pumps must be examined every two years, the tanks must be installed and serviced by registered contractors, and the municipality must zone the site for fuel retail. The fuel supply agreement — branded or independent — is the commercial heart of the deal, and it is signed before the tanks go in the ground.

Step 1: Pick the model and the site

Three models dominate. A branded station carries a major fuel brand, buys fuel under that brand's supply agreement, and gets brand signage and marketing in exchange for brand standards and a long term. An independent station buys fuel on the open wholesale market and keeps pricing freedom, but carries its own brand and marketing costs. A cardlock serves commercial accounts with card access, usually without a public store, and runs on volume from fleets rather than passing traffic.

The site decides whether any model works. You need zoning that permits fuel retail, road access that lets cars enter and leave safely, enough room for underground tanks, pump islands, and a store, and separation distances from homes, schools, and watercourses that the fire code and the municipality require. Check the zoning before you make an offer — a site that looks cheap because it cannot be zoned for fuel is not a bargain.

Step 2: Get municipal approval and the fuel supply deal

Start with the municipal planning department: confirm the zoning, the site plan requirements, and the business licence. Municipalities license automobile service stations under their business licensing by-laws and set their own fees. The City of Windsor, for example, requires an automobile service station application, a business ownership declaration, government-issued ID, and a certificate or licence from the TSSA where liquid fuels are sold, with licence renewal by October 31.

In parallel, negotiate the fuel supply agreement. The supplier's terms set the wholesale price formula, the brand obligations, the equipment the supplier provides or requires, the minimum volumes, and the length of the term. Read the term and the exit clauses before signing: a ten-year branded agreement with a volume commitment is a different business from a one-year independent supply deal. The agreement also affects financing — lenders treat a branded station with a long supply agreement differently from an independent one.

Step 3: Get the site licensed and the tanks installed

In Ontario, the TSSA's Fuels Safety Program regulates the transportation, storage, handling, and use of fuels, and its core services include inspecting and licensing gas stations. O. Reg. 217/01 (Liquid Fuels) covers facilities where gasoline or an associated product is handled, loaded, or dispensed as motor vehicle fuel, and requires that a retail outlet, marina, or bulk plant be licensed. The station must comply with the CSA Liquid Fuels Handling Code (LFHC-17).

All work on the fuel system must be done by registered people: all contractors working on liquid fuel equipment must be registered with the TSSA, and persons repairing, installing, removing, and servicing underground tanks must be trained and certified. Private fuel outlets — premises other than a retail outlet where gasoline is put into vehicle fuel tanks — must also comply with the LFHC-17 code, although the TSSA does not licence them. For a retail station, the TSSA reviews the facility plans, inspects the installation before backfilling, and inspects again after completion. Notify the TSSA at least 10 business days before backfilling, and get written permission from the director before modifying a licensed facility.

Step 4: Get the dispensers verified by Measurement Canada

Every pump that sells fuel to the public is a trade measuring device, and Measurement Canada regulates it. Under the mandatory examination frequencies, retail petroleum devices other than propane meters are examined every two years, and propane meters every year. The examination is carried out by Measurement Canada or an authorized service provider, and a device that passes carries an inspection sticker. The Fairness at the Pumps Act measures mean retailers are accountable for pump accuracy, with administrative monetary penalties of up to $2,000 and court fines of up to $10,000 for minor offences, up to $25,000 for major offences, and up to $50,000 for repeat offenders.

Build the two-year cycle into the operating calendar from day one: book the authorized service provider before the sticker expires, keep the inspection records, and do not dispense through a pump whose verification has lapsed.

Step 5: Open, and keep the compliance cycle running

Opening day is the start of a compliance cycle, not the end of one. The TSSA licence renews, the dispensers are re-verified every two years, the tanks are inspected and maintained, and the municipal business licence renews annually. Keep the environmental side current too: monitor the tanks for leaks, keep spill response equipment on site, train staff on the spill procedure, and know the Spills Action Centre number before you need it.

The store deserves the same attention as the forecourt. Price the fuel to move volume, and make the margin in the store, the car wash, and any food service — those are the lines where an independent operator can actually differentiate. Track fuel and store sales separately so you can see which side of the business is carrying the site.

Figures that were cut rather than verified

No TSSA licence fee, tank installation cost, or station startup cost is stated in this guide: the TSSA licence fee is not stated on an official TSSA page, and build costs vary too widely by site, tank size, and store format. A proposed $652 annual fee for retail mobile fueling appeared in a 2026 TSSA consultation document — it is a proposal for a different activity (fueling from a highway tank), not a current gas station fee, so it is not stated as a cost here. No fuel margin figure is stated: margins depend on the supply agreement and the wholesale price, and no official source publishes a current Canadian retail margin.

Related guides

Starting a gas station in Canada, in five steps

  1. Pick the model and the siteIndependent, branded, or cardlock — each has a different fuel supply deal and a different brand obligation. The site needs the right zoning, road access, and room for tanks, pumps, and a store.
  2. Get municipal approval and the fuel supply dealConfirm zoning and get the municipal business licence, then sign a fuel supply agreement — the supplier's terms set your margins, your branding, and often your equipment.
  3. Get the site licensed and the tanks installedIn Ontario, a retail outlet must be licensed by the TSSA under O. Reg. 217/01, and all work on liquid fuel equipment must be done by a TSSA-registered contractor.
  4. Get the dispensers verified by Measurement CanadaRetail petroleum dispensers must be examined every two years — propane meters every year — and only a verified dispenser may be used in trade.
  5. Open, and keep the compliance cycle runningLicences renew, tanks are inspected, dispensers are re-verified on schedule, and any modification to the facility needs written permission before the work starts.

Questions people ask

Do I need a licence to run a gas station in Canada?

Yes — fuel retail is licensed provincially. In Ontario, the Technical Standards and Safety Authority (TSSA) licenses gas stations, and O. Reg. 217/01 states that no person shall operate a retail outlet, a marina, or a bulk plant unless it is licensed. The TSSA's Fuels Safety Program inspects and licenses gas stations, propane filling stations, marinas, and tanker trucks, and reviews facility plans for licensed sites. Other provinces have their own fuel safety regulators — check the regulator in your province before you buy a site.

What does the TSSA require for a gas station in Ontario?

The station must be licensed as a retail outlet under O. Reg. 217/01 and must comply with the CSA Liquid Fuels Handling Code (LFHC-17), which sets the requirements for storing, handling, and dispensing gasoline and associated products. All contractors working on liquid fuel equipment, such as underground tanks, must be registered with the TSSA, and people installing, removing, or servicing underground tanks must be trained and certified. Any modification to a licensed facility needs written permission from the director before the work starts, and the TSSA must be notified at least 10 business days before backfilling a tank installation.

How often must gas pumps be inspected?

Measurement Canada sets mandatory examination frequencies. In the retail petroleum sector, a device other than a propane meter must be examined every two years; propane meters are examined every year. The inspection is done by Measurement Canada or an authorized service provider, and a device found to be measuring accurately carries an inspection sticker. Selling fuel through a dispenser that has not been verified is an offence under the Weights and Measures Act.

What happens if there is a fuel spill or leak?

Act immediately and notify the authorities. In Ontario, a spill must be reported to the Spills Action Centre of the Ministry of the Environment, Conservation and Parks — the TSSA publishes the number 1-866-663-8477 for spill incidents. Underground tank leaks must be found and stopped by a TSSA-registered contractor, and removing a tank or closing a site requires an Environmental Assessment Report under the TSSA's Environmental Management Protocol. Leaks that reach soil or groundwater become an environmental cleanup, which is why leak detection and tank integrity are part of the operating routine, not an afterthought.

Can I run a gas station without a convenience store?

Yes — fuel-only sites and cardlock sites exist — but the store is where most of the profit sits. Fuel margins are thin and are largely set by the supply agreement and the wholesale price; the store, car wash, and food service carry the higher margins. Decide the model before you sign the supply deal, because a branded supply agreement can dictate the store format, the signage, and the hours. A cardlock serves commercial accounts rather than the public and has different licensing and access rules.

What municipal approvals does a gas station need?

Zoning that permits a fuel retail use, a site plan approval, a building permit for the tanks, canopy, and store, and a municipal business licence. Municipalities also set their own licence fees — for example, Windsor's business licensing by-law lists an automobile service station licence, and the city requires a TSSA certificate or licence where liquid fuels are sold as part of the application. Start with the municipal planning department: a site that cannot be zoned for fuel retail cannot be fixed later.

Sources

Get new guides by email

One short email when a new Canadian startup guide publishes. No spam — unsubscribe anytime.

We use your address only for the newsletter. Privacy policy.