The South African energy sector is undergoing significant and exciting change, with the fuel retail industry at the forefront of transformational change in the country. Knowing how to become a fuel distributor or broker in South Africa could prove to be a very lucrative business. This is because it offers high and fast income earning potential.
Energy brokers are intermediaries between energy suppliers and their clients. Brokers do not own or distribute energy, and they are not allowed to sell energy directly to you. Brokers serve as the middleman between you and an energy supplier when you are searching for an energy rate. Fuel distributors or brokers simply present the rates of a wholesaler or supplier.
An energy broker finds the best possible rates from energy suppliers for their commercial and industrial customers. Energy brokers typically get paid by the suppliers and negotiate with the suppliers to find lower energy prices. Energy brokers may also offer consulting services as a part of their service offering. If you want to sell petroleum products as a fuel distributor for end use, you must apply for a license from the Department of Mineral Resources and Energy (DMRE).
Steps on how to become a Fuel Distributor or Broker in South Africa
- Complete the Application form for the specified license.
- Send the application form to the Department of Mineral Resources and Energy regional office.
- The Department will send you a letter stipulating that you must publish a notice of application in four newspapers.
- You must provide proof of the publication of the notice of application to the department.
- Once you have a license, you must submit information on your business annually using the Wholesale license annual information (Submission Form), DMRE 30.
For more information on how to become a fuel distributor or broker – do not hesitate to contact us.