<p>Groundwater contamination by petroleum hydrocarbons from leaking underground storage tanks (USTs) at fuel stations poses a significant environmental and public health concern globally. This study investigates the extent of such contamination in the city of Tajoura, Libya, where reliance on private groundwater wells for domestic purposes is prevalent due to inadequate municipal water services. A centrally located fuel station suspected of leakage was selected, and 36 groundwater samples were collected from 12 strategically chosen sites surrounding the station. Total Organic Carbon (TOC) and Total Hydrocarbons (THC) concentrations were quantified using standard methods (ASTM D 3921-96 for TOC and EPA Method 1664 for THC). Results indicate significant contamination, with TOC concentrations ranging from 1.124 to 3.1 mg/L and THC from 0.095 to 1.56 mg/L. The highest concentrations were consistently observed in the southern direction closest to the fuel station, supported by noticeable water color and distinct odor. A comparison with Libyan and EU drinking water standards (TOC ≤ 0.5 mg/L, THC ≤ 0.3 mg/L) reveals that a substantial number of samples exceed permissible limits, particularly in areas closest to the suspected source. This contamination poses serious long-term health risks, including various types of cancer, neurological disorders, and adverse effects on the liver and kidneys, for the local population. This pioneering study provides crucial baseline data for Tajoura Municipality, highlighting an urgent need for rigorous monitoring, maintenance, and remediation efforts at fuel stations. Immediate cessation of contaminated water use is imperative, along with comprehensive health risk assessments and policy development for fuel station operations to safeguard public health and the environment.</p>