Authorities are saying that more than one officer opened fire on the suspect, but they are not saying how many officers or how many rounds.
The violence erupted at 7:30 p.m. at the Shell station at Vermont Avenue and Wilshire Boulevard.
The male suspect with long hair who some mistook as a woman was dead at the scene and his car was riddled with bullet holes.
One customer was caught in the crossfire as he was pumping gas and ducked on the ground.
Investigators say it all began when the 20-year-old suspect carjacked a woman in San Bernardino just before 3:30 p.m.
Three hours later, police say the suspect then abandoned that vehicle and carjacked a 65-year-old man at gunpoint in East Los Angeles. A short time later, police spotted that vehicle and a chase ensued for about an hour.
The suspect drove through Hollywood and Koreatown before pulling into the gas station.
"There were patrons both inside the gas station and outside the gas station. At some point, he pointed that weapon at the individuals that were inside of the gas station, and an officer-involved shooting occured," said Cmdr. Andrew Smith of the Los Angeles Police Department.
All of the officers involved returned to the station to be interviewed as part of an investigation.
The intersection of Vermont Avenue and Wilshire Boulevard was closed as authorities investigated. Officials said commuters should expect delays in the area through Friday morning. Metro buses 20, 51, 52, 352, 204, 720, 754 were expected to be delayed due to detours.