It is important to note that the Petroleum Products Act, No 120 of 1997 (Petroleum Products Act) and its regulations thereto provide a licensing and regulating framework for the manufacture, wholesale and retail of petroleum products in South Africa. You must apply to the Department of Mineral Resources and Energy for a site and a retail license if you want to buy or sell petroleum products to members of the public. The license will be valid for as long as your business operates. These licenses are issued by the Department of Mineral Resources and Energy (DMRE) and are intended to regulate the fuel industry to ensure compliance with safety, health, and environmental regulations. Knowing how much a fuel license is in South Africa is therefore vitally important.
Each license has specific conditions of use and is suitable for different types of businesses.
Businesses that sell fuel in bulk to other businesses or retailers require a wholesale fuel license. This license is suitable for businesses that import or produce their fuel products and sell them to other businesses. It is important to note that a wholesale fuel license does not allow a business to sell fuel directly to the public. A wholesale fuel license is ideal for companies that require large volumes of fuel for their operations. This includes construction, mining, and transport companies. These companies require a reliable source of fuel for smooth operations.
Businesses that sell fuel directly to the public require a retail fuel license. This license is suitable for petrol stations, convenience stores, and other businesses that sell fuel as a secondary product. A retailer is allowed to purchase petroleum products from a licensed manufacture or wholesaler only. Having a retail fuel license is ideal for businesses that want to diversify their product offerings and provide a one-stop shop for their customers.
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