The Petroleum Products Amendment Act (Act No. 58 of 2003) mandates that all retailers of specified petroleum products must possess a valid retail licence. Non-compliance with this Act can result in penalties, including fines of up to R1,000,000. When a filling station is sold to a new owner or there is a change of 50% or more in company ownership of the facility, a new retail licence must be obtained from the Department of Energy. We will assist with the application process for the retail licence by providing all necessary services. Please note: The Act prohibits any person or entity from holding both a retail and wholesale licence simultaneously.

Site Licence is issued to the owner of the land or where the owner gave written permission thereto according and acceptable to the regulations regarding petroleum products site and retail licences. The Controller (Department of Energy) must be satisfied that there is a need and desirability for a site and that the site will promote the licensing objectives stipulated in the Act. A site licence is transferable and must be transferred when the land changes ownership.

New developments must comply with environmental legislation, zoning laws, and Road Traffic Authorities regulations. The initial step involves assessing the site's viability, which requires the expertise of Environmental and Traffic Specialists in the petroleum sector. Approval from the Controller (Department of Energy) is essential, ensuring the necessity and economic desirability of the new site. Additionally, the establishment must align with the licensing objectives outlined in the Act. Key factors to consider include zoning, heritage, environmental impact assessments, as well as the proximity of competitors and the accessibility of the facility. We collaborate with accredited professionals within the fuel industry to deliver the highest quality service to clients.

It’s essential to understand the regulations around wholesaling petroleum products. According to the Petroleum Product Act, a wholesaler is an individual or business that engages in bulk transactions (1,500 liters or more per client, per transaction) involving prescribed petroleum products. These transactions can occur between licensed manufacturers, wholesalers, or retailers. Importantly, wholesalers can also sell petroleum products directly to end consumers, provided they adhere to the 1,500-liter rule. To operate as a wholesaler, one must obtain a valid wholesale license, with or without storage facilities as specified by the Petroleum Product Act. A Wholesale License is bulk distributing of petroleum products -All Diesel, Petrol, Gas and Illuminating Paraffin, Jet Fuel.
The Act stipulates that no individual or business entity may operate as a wholesaler (i.e., sell any form of petroleum product) without a valid wholesale licence. Wholesale licences can be obtained with or without storage facilities as specified by the Petroleum Product Act.

Please note: The Act prohibits any person or entity from holding both a retail and wholesale licence.

Entities or individuals with valid retail or wholesale licenses are subject to the Annual Submission Process. Your license remains valid as long as your business is operational and a going concern. However, you must provide annual information about your business to the Department of Energy by 28 February each year. Additionally, there is an annual license fee of R 500.00 payable to the Controller of Petroleum Products.