DALLAS -- Despite high fuel prices over the last couple of years, independent retailers say it's become increasingly difficult to stay in business because of higher costs, intense competition and less favorable deals with distributors, The Dallas Morning News reports.

For most of the 20th century, buying and operating a gas station was a popular way for an entrepreneur to get into business for himself. But if current trends continue, some independent station owners say that opportunity could go the way of the full-service lane.

"The only time we make money is when prices drop" because stations can inflate their margins a little then, said Bob Knox, executive vice president of Knox Oil Co., which operates three stations in North Texas.

For innovative operators, owning a station can be viable because almost everybody needs gasoline. But building more profitable revenue drivers – such as a large, nationally branded convenience store – can be difficult for independent owners who lack the capital or the available land.

Competition is fierce in the gas business, where customers are especially price-sensitive. One-fourth of customers will drive 10 minutes out of their way to save 3 cents on a gallon, according to the 2007 NACS Consumer Fuels Report, noted the newspaper.

Marc Marrocco, a commercial real estate broker with Weitzman Group in Dallas, said gas stations make great locations for bank branches, and most station owners are looking for an exit.

"When I look at a corner, I know the gas station is up for sale, even if he says it isn't," he said. "We contact them and make them an offer and usually wind up with a bank on top of it."

While gasoline represents about 70 percent of a typical station's sales, it accounts for only a third of its profit, NACS Vice President of Communications Jeff Lenard told the newspaper.

“The small gas-only outlets are going away," said Lenard. "You can't run a business selling gas alone."