For mines, transport operators and manufacturers, diesel is often one of the largest operating costs. Appointing the right supplier protects both margins and production. These are the questions we recommend procurement teams ask.
Credentials
- Is the supplier licensed? Petroleum wholesale activity requires a wholesale licence under the Petroleum Products Act. Ask for the licence number.
- Is it tax compliant? Request a SARS tax compliance status PIN.
- What is its B-BBEE level? Request a valid certificate and check the expiry date. A higher level supports your preferential procurement scorecard.
Product and quality
- Which grade? Confirm 50ppm or 10ppm against your equipment specification.
- What quality documentation is provided? Certificates of analysis or quality per delivery should be standard.
- How is contamination prevented? Ask about tank cleanliness, sampling and handling procedures.
Commercial terms
- How is the price set? A formula linked to the regulated wholesale price, with a clear discount or margin, is easier to audit than ad-hoc quotes.
- Spot or term? See Spot vs term fuel supply.
Delivery and continuity
- Can the supplier meet your delivery pattern? Volume per delivery, frequency, site access and lead times.
- What happens in a disruption? Ask about alternative sources, buffer stock and escalation contacts.
African Energy supplies bulk diesel at wholesale pricing. Request a quote; our company credentials are available on request.
Published by African Energy Enterprises. This article is general information and does not constitute legal, tax or financial advice. Regulated prices and rules change; confirm current figures with the relevant authority.
