Starting a fuel distribution business — becoming a jobber — is a licensing, capital, and logistics exercise before it is a sales exercise. The barriers are real, and most failures come from underestimating working capital, not from a lack of customers.
This is the practical sequence for standing up a fuel distribution company in the US.
Entity, Licensing, and Bonding
Form the entity, obtain a federal EIN, and register for a federal 637 activity letter where applicable. Then obtain state motor fuel distributor or wholesaler licenses in every state you will sell into, each with its own surety bond, tax filings, and reporting cadence.
If you will haul your own product, add USDOT and hazmat motor carrier authority, hazmat registration, drivers with tanker and hazmat endorsements, and a compliant drug and alcohol testing program.
Supply and Terminal Access
Negotiate rack access with terminal operators or a supply agreement with a refiner or larger jobber. Terminals will run credit and may require prepay, letters of credit, or EFT drafting until you establish history.
If you want to distribute branded product, apply for a distributor agreement with the oil company. Expect image standards, minimum volume, and territory conditions.
Capital and Cash Cycle
The cash cycle is what kills new jobbers: you pay for a load on delivery or within days, then extend credit to customers for one to two weeks. A single tanker of product is a large receivable, and price spikes increase working capital needs overnight.
Budget for trucks or contract carriage, tanks and equipment you place with customers, insurance including pollution and auto liability, back-office systems, and a working capital line sized to your peak price environment.
Building the Book
Most new distributors start with a nucleus of committed volume — a few retail sites or fleet accounts — before buying trucks. Anchor volume makes freight economics work and gives the terminal a reason to extend terms.
Considering acquiring stations as part of a distribution build in Florida? Call The Gas Station Group at (305) 518-1545. All transactions are brokered through Fausto Commercial.
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Speak With a Florida Gas Station Specialist
Request a confidential consultation or off-market opportunities and pricing through our contact page, or call +1-305-518-1545. The Gas Station Group is headquartered at 8603 S Dixie Hwy, Miami, FL 33143. Principal: Bobby Berrido.