The Department of Mineral Resources and Energy (DMRE) oversees and regulates the minerals and energy sectors in South Africa. Fuel businesses are required to act in accordance with the DMRE to ensure compliance with safety, health, and environmental regulations. You must apply to the DMRE for a site or retail license if you want to purchase or sell petroleum products to members of the public. Even appeal rejected DMRE licenses can be rectified through compliance with the Department. If a fuel license application is rejected, you can adjust your business model or take the necessary measures to obtain the license. All appeals must be sent to the office of the Minister.
DMRE Licenses…
- Promote an efficient manufacturing, wholesaling, and retailing petroleum industry;
- Facilitate an environment conducive to efficient and commercially justifiable investment;
- Create employment opportunities and development of small businesses in the petroleum sector;
- Ensure country wide availability of petroleum products at competitive prices; and
- Promote access to affordable petroleum products by low income consumers for household use.
It is also important to note that a wholesale fuel license is required for businesses that sell fuel in bulk to other businesses or retailers. A retail fuel license is required for businesses that sell fuel directly to the public. A decision is made within 90 days from the date when the Department received proof of publication of the notice of application. Your license is then valid for as long as your business operates.
Appeal Rejected DMRE Licenses may include the following reasons:
- Incorrect submission of information / documentation;
- Sale of businesses without taking into consideration the licensing processes;
- Operators not being the actual license holders;
- Wholesale licenses not being utilised;
- Vertical integration;
- Loopholes in the legislation (HDSA participation, Vertical integration);
- Regulation 24 – Sites not being built within 24 months;
- Non-payment of annual fees; or
- Litigations (approval / refusal).
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