In South Africa, businesses that sell or distribute fuel and lubricants are required to have a valid fuel license. These licenses are issued by the Department of Mineral Resources and Energy (DMRE). If you want to sell petroleum products to customers for end use, you must apply for a wholesale fuel license from the DMRE. Wholesale fuel licenses issued by the DMRE are intended to regulate the fuel industry, ensuring compliance with safety, health, and environmental regulations.
From a business perspective, a wholesale fuel license is ideal for companies that require large volumes of fuel for their operations, such as construction, mining, and transport companies. These businesses require a reliable and consistent source of fuel to keep their operations running smoothly.
The license allows you to buy petroleum products in bulk (1500 litres or more, per transaction of petroleum products) from a licensed manufacturer, and to sell it to end users. Having a Wholesale fuel license allows businesses to purchase fuel at a lower cost per litre, than if they were purchased from a retail petrol station. Businesses can therefore sell fuel to their customers at a lower price while still making a profit.
Additionally, Wholesale fuel licenses allow businesses to purchase fuel in bulk and store it on their premises, which can be more convenient for businesses with large fuel requirements. The license is valid for as long as your business operates. Applicants should receive a response within 90 days from the date when the Department received proof of publication of the notice of application.
The Process for a Wholesale Fuel License
- Complete the Application form for wholesale license, DMRE 38.
- 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 attaining a Wholesale Fuel License – Contact Us