What is a Petroleum Wholesale License?
The licence which allows you to buy petroleum products in bulk (1 500 litres or more, per transaction of petroleum products) from a licensed manufacturer, and to sell it to end users. The licence is valid for as long as your business operates.
About applying for a petroleum wholesale licence
If you want to sell petroleum products to consumers for end use, you must apply for a wholesale licence from the Department of Energy.
The licence allows you to buy petroleum products in bulk (1 500 litres or more, per transaction of petroleum products) from a licensed manufacturer, and to sell it to end users.
The licence is valid for as long as your business operates.
What you should do
- Complete the form Application for wholesale licence, DE 28.
- Send the application form to the Department of 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 licence, you must submit information on your business annually using the Wholesale licence annual information (Submission Form), DE 25.
How long does it take
You should receive a response within 90 days from the date when the Department received proof of publication of the notice of application.
How much does it cost
- R1 000
- R500 annual licence fee.
Forms to complete
- Application for wholesale licence: DE 28
- Wholesale licence annual information (submission form): DE 25
- Application for a temporary licence
Frequetly Asked Questions
1. HOW LONG DOES THE WHOLESALE LICENSE TAKE TO GET APPROVED?
It takes approximately 4 months for a license to get approved. The first 20 days are for Public review and 90 days for Application Evaluation.
2. WHAT ARE THE MINIMUM REQUIREMENTS?
Company Registration Certificate, Memorandum of Incorporation, BEE certificate, Share Certificate, Director/shareholder IDs. NB: All Documents should be certified.
3. WHAT ARE THE BENEFITS OF HAVING THE LICENSE?
- To Supply & distribute petroleum products in bulk to retailers, government entities & commercial clients.
- To Import and Export petroleum products.
- To get recognized by the Department of Energy as a licensed Petroleum Wholesaler.
4. WHICH PETROLEUM PRODUCTS MAY BE TRADED THROUGH THE LICENSE?
Petrol, Diesel, Paraffin, Liquefied Petroleum Gas, Aviation Gasoline, Jet Fuel, and Bio Diesel.
5. WHO MAY APPLY FOR THE PETROLEUM WHOLESALE LICENSE?
Any person who wants to sell petroleum products in bulk to other licensed wholesalers, retailers, government entities and commercial clients
6. WHAT OTHER ADDITIONAL PERMITS ARE NEEDED TO IMPORT/EXPORT PETROLEUM PRODUCTS?
Import/Import Permit (SARS) + Recommendation from DOE + ITAC Permit.
7. ONCE YOU ARE IN POSSESION OF A WHOLESALE LICENSE WHERE CAN YOU GET YOUR PRODUCT?
You stock up on petroleum products (NO. 4) from different refineries (Sasol, BP, Shell etc.) that offer them at competitive rates.
8. IS INFRASTRUCTURE REQUIRED ONCE YOU ARE IN POSESSION OF A WHOLSALE LICENSE?
There is no infrastructure needed to be a supplier, only a tank is required to transport your product that you buy from refineries (Sasol, BP, Shell etc.) to your clients.
9. WHAT ARE THE PROFIT ESTIMATIONS FOR A LICENSE HOLDER?
This varies in terms of how many clients a license holder attains, marketing your petroleum business to potential clients and offering competitive prices in comparison to other suppliers is crucial and a huge factor that will determine profits.
NB: If you have any questions that are not covered in our FAQs’, please contact us via email at firstname.lastname@example.org