The fuel retail business is no longer just about pumps and price wars. Rapid policy shifts, tighter emissions standards, and changing consumer habits from rising EV ownership to growing demand for low-carbon fuels are forcing station owners to rethink their core business. Where once an operator measured success by gallons sold, today success depends on a site’s ability to host multiple energy types, provide convenient retail and food options, and capture new revenue streams. Industry expert Nicholas Kambitsis argues this is not optional, operators who fail to diversify risk being left with stranded assets or shrinking margins.
At the same time, advances in technology and supportive incentives are creating real opportunities. Biofuels can be integrated into existing supply chains quickly, while hydrogen promises a low-emission solution for heavy-duty fleets if the capital and regulation hurdles can be cleared. That makes strategic planning and careful risk management more important than ever. Nicholas Kambitsis of Raceway Petroleum walks through the practical trade-offs between hydrogen and biofuels, outlines the costs and compliance issues operators will face, and offers clear steps managers can take now to protect and grow their businesses.
Operators generally face two choices:
Both paths affect operations, compliance, and business strategy.
Hydrogen can power vehicles with no tailpipe emissions, but the source matters.
Nicholas Kambitsis notes that choosing green hydrogen reduces future regulatory headaches, even if the upfront cost is higher.
Building hydrogen refuelling stations costs millions. Typical delivery and build options include gaseous delivery, liquid delivery, or onsite electrolysis, each with different price tags and technical needs. Low sales volumes and complex storage add to the risk. Operators often need long-term contracts (for example, with trucking fleets or municipalities) to justify the investment.
Biofuels such as biodiesel and renewable diesel are easier to roll out because they use existing terminals, trucks, and pumps in many cases.
Biofuels can fit into current distribution systems, and lower blends (like B5) usually work without major changes. Larger blends (B20 and up) often require checks and upgrades to underground storage tanks (USTs), piping, and equipment. Operators must confirm compatibility through lab certification or manufacturer approval and follow state UST notification rules.
Nicholas Kambitsis highlights that biofuels let many operators begin reducing emissions without the high capital burden of hydrogen.
Programs like the Inflation Reduction Act (IRA) offer incentives for example, a tax credit that covers a portion of alternative fuel equipment costs. For biofuels and UST upgrades, these incentives can cover a meaningful share of expenses. For hydrogen stations, however, the incentives cover a much smaller slice of the total project cost, so operators still need major private investment or grants.
Fuel margins are thin. Non-fuel revenue c-store sales, foodservice, car washes, delivery, and e-commerce will be essential. As electrification and fleet-based fuelling grow, direct fuel sales to retail customers could fall, making the retail centre the primary profit engine.
Nicholas Kambitsis of Raceway Petroleum recommends operators focus on transforming sites into multi-function retail hubs that capture non-fuel revenue and serve broader community needs.
Repurposing existing stations, converting old service bays to dining areas, expanding retail footprints, or creating mixed-use spaces can unlock more value than building new stations. Prior environmental and regulatory clean-up is critical before any reuse. Nicholas Kambitsis stresses strict UST and EPA compliance to avoid safety and liability issues.
Operators should:
These steps help spread risk and create predictable revenue streams, a point often emphasised by Nicholas Kambitsis.
The future of fuelling is broader than pumps and price per gallon. Operators who act now, balancing lower-cost biofuel upgrades with targeted, contract-backed investments in hydrogen, will protect their margins and capture new revenue. Following the practical guidance of leaders like Nicholas Kambitsis of Raceway Petroleum, operators can turn legacy stations into flexible, profitable energy and retail hubs for the years ahead.
