Residents from six flats and one house have been taken to a church hall after the incident on Pagham Road, Pagham, near Bognor Regis.
Fire officials said a 100-metre evacuation zone has been put in place as a “safety precaution”, and people told to avoid the area.
Reports said residents in the village had heard a loud bang at about 3.30am on Monday.
In an update at just after 5am on social media, West Sussex Fire And Rescue Service added: “We are currently dealing with a road traffic incident – a car has crashed into a gas substation in Pagham Road.
“We have three crews in attendance. Avoid the area to allow firefighters to work safely.
“People are being transferred to Pagham Church Hall.”
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No details have been released on whether anyone was injured in the incident.
