South Africa’s petroleum industry is licensed under the Petroleum Products Act, 120 of 1977. Anyone who wants to sell petroleum products at wholesale level needs a wholesale licence issued by the Controller of Petroleum Products within the Department of Mineral and Petroleum Resources.
Who needs a wholesale licence?
A wholesale licence is required to buy and sell petroleum products such as diesel, petrol and paraffin to other businesses, including retailers and end users, rather than selling directly to the public at a licensed retail site. Retail sites need separate site and retail licences.
What the Controller considers
Applications are assessed against the requirements of the Act and its regulations. Typical considerations include the applicant’s business plan, financial and technical capability, access to storage and distribution, compliance with health, safety and environmental standards, and the promotion of transformation in the industry.
Requirements and forms change from time to time, so applicants should consult the department directly or work with a specialist adviser.
The supply challenge
A licence allows a business to trade, but it does not guarantee access to product. Many small and emerging wholesalers find it difficult to secure supply on competitive terms from established suppliers, particularly without significant working capital.
How African Energy can help
We supply diesel at bulk wholesale pricing to licensed wholesalers. Learn about wholesale supply or start a trading enquiry.
This article is general information and not legal advice.
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.
