The fire broke out at A H & G Deakins Fuels in Clunton, destroying two lorries and a van.
Witnesses said the owner's of the depot are cut up about the fire that also destroyed some of their personal belongings.
An eyewitness, who wished to remain anonymous, said: "The road was shut while the fire service were dealing with blaze, but we couldn't see much just the smoke.
"We were the other side of the village so we couldn't actually see the flames, but it was very bad.
"It's a shame as the people who run the business are lovely and they are very upset about what has happened to their business."
Deakins Fuels is a family run business that has been trading for 25 years.
They supply and deliver domestic and commercial fuels and offer a range of environmental services, including septic tank emptying and cesspit cleaning.
Six fire engines – from Bishop's Castle, Clun, Craven Arms, Shrewsbury and Tweedale – were joined by crews from over the border from Leintwardine and Kingsland at the blaze in Clunton.
It broke out just before 6pm on Sunday and took around three hours to put out. No-one is believed to have been injured.
Guy Williams, investing the fire from Shropshire Fire and Rescue, said they are not treating the fire as arson.
"At this stage we are not looking at the fire as being deliberate.
"There is severe damage to some of the vehicles and to one of the buildings, but it could have been a lot worse considering it was a fuel depot.
"No one was injured in the fire, which is the important thing and that includes live stock and animals.
"The crews did a great job at keeping the fire under control, and I believe they even prevented some of the water going into the River Clun.
"That is very good thinking as you never know what the excess water could be carrying, especially in this situation.
"But the owners are very upset as it is a high level of damage that has been caused to the premisses."