With hundreds of uses, liquefied petroleum gas (LPG) is an economical and staple source of energy for many homes and industries in South Africa. LPG gas is more efficient than traditional fuels and is more environmentally friendly. The gas is mainly distributed in cylinders, across many different markets. LPG gas is an efficient fuel in the agricultural, recreation, hospitality, construction, sailing and fishing sectors. Licensing to sell LPG gas is therefore a vital first step to gaining market share.
In South Africa, LPG gas is produced primarily as a derivative of the crude oil refining process. Many South Africans rely on LPG for various purposes, so there is always a demand for the business. LPG is a petroleum product and is therefore regulated under the Department of Mineral Resources and Energy (DMRE). As such, you must obtain a license to sell LPG gas. You must apply to the Department of Mineral Resources and Energy for a site or a retail license to sell LPG gas products to the public.
The DMRE promotes and regulates the minerals and mining sectors for transformation, growth, development. Furthermore, it ensures that all South Africans may experience sustainable benefit from the country’s mineral wealth. This falls under the legislation of the Mineral and Petroleum Resources Development Act 28 of 2002, which intends to make provision for equitable access to and sustainable development of the nation’s mineral and petroleum resources and to provide for matters connected therewith. The Petroleum Products Act, 1977 regulates the storage and distribution of petroleum products, including LPG gas.
Licensing to sell LPG gas is possible through applying to your regional Department of Mineral Resources and Energy office. This requires publishing a notice of application and paying a R500 annual license fee.
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