Fire and Rescue NSW said there were 20 fire trucks on Hamilton Road as crews battled the blaze.
“Numerous gas cylinders venting and on fire,” FRNSW said.
“Local evacuations are in place and currently no injuries reported.”
Duty commander Paul Collis said gas cylinders burn “very ferociously”.
“Once they get hot, it spreads from one to another and the gas escapes quite violently, causing the fire to spread to the surrounding buildings,” Collis said.
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Firefighters are trying to extinguish the cylinders as well as protect the service station from being burnt down.
Several houses nearby have been evacuated as crews also try to keep those buildings safe.
“It’s going to be an ongoing incident with the hazardous materials,” Collis said.
Collis said there had so far been no air quality issues for residents.
“It’s a complicated incident with a lot of things going on,” he said.