to our world

  • Filling Stations For Sale
  • Your Own Petroleum Wholesale Business
  • Site/Retail/Wholesale Licenses
  • Develop a new filling station
  • Our Core Values

Start your own profitable - low risk - low operating cost Petroleum Wholesale Business

* Sell any petroleum products anywhere in South Africa

* To import or export petroleum products you need a valid petroleum wholesale license

* You don't need an office, this business can be run from your home

* No depot or trucks required to obtain license approval

* No staff needed, and no overhead costs

* There is no limit to the income potential

* This opportunity is available to all South Africans, regardless of race, gender, etc.

* The total cost to obtain a wholesale license is R27 000 

How does Petroleum Wholesaling work ?

Petroleum Wholesaling is nothing new in South Africa. The well-known fuel companies like Shell, Engen, Sasol, BP, Caltex, and Total are all licensed Petroleum Wholesalers. 

wholesale fuel license business plan south africa pdf

wholesale fuel license business plan south africa pdf

wholesale fuel license business plan south africa pdf

  • About SAFLII
  • Terms of Use

South Africa: Consolidated Regulations

Regulations regarding petroleum products site and retail licences.

Support SAFLII

Last checked: 9 October 2019

PETROLEUM PRODUCTS ACT

Act 120 of 1977.

REGULATIONS REGARDING PETROLEUM PRODUCTS SITE AND RETAIL LICENCES [Updated to 19 December 2012]

The Minister of Minerals and Energy has under sections 2A, 2C, 2E, 2F and 12C of the Petroleum Products Act, 1977 (Act 120 of 1977), made the regulations in the Schedule.

SCHEDULE ARRANGEMENT OF REGULATIONS

  • Definitions
  • Scope of regulation

CHAPTER 1 SITE LICENCES

  • Lodging of site licence application
  • Notice of application for site licence
  • Acceptance of site licence application
  • Evaluation of site licence application
  • Procedure for issuing site licence
  • Particulars to be included in site licence
  • Site rehabilitation
  • Financial security for rehabilitation
  • General conditions with regard to site licence
  • Transfer of site licence
  • Documents to be submitted in support of site licence application
  • Documentation to be submitted to the Controller upon a successful application

CHAPTER 2 RETAIL LICENCES

  • Lodging of retail licence application
  • Notice of application for retail licence
  • Acceptance of retail licence application
  • Evaluation of a retail licence application
  • Procedure for issuing a retail licence
  • Limitation on number of retail licences issued to wholesalers
  • Particulars to be included in retail licence
  • Conditions with regard to retail licence
  • Temporary retail licence
  • Commencement and continuation of business under retail licence
  • Documents to be submitted in support of retail licence application
  • Information to be submitted annually to Controller by licensed retailer

CHAPTER 3 GENERAL PROVISIONS

  • Application for duplicate site or retail licence
  • Surrender of licence
  • Suspension or cancellation of licence
  • Termination of a licence
  • Decision-making by Controller
  • Refusal to issue licence
  • False Declarations
  • Additional Information
  • Amendment of licence
  • Ownership of licence
  • Publication of data by the Controller

Annexure A: Forms Annexure B: Licence fees

In these Regulations any word or expression to which a meaning has been assigned in the Act shall have the meaning so assigned and unless the context indicates otherwise—

“certified copy” means a photocopy of an original document that has been—

(a) attested as a true copy of the original and is marked with the words “original seen” or “true copy of original document”; and

(b) signed and stamped by a commissioner of oaths contemplated in the Justices of the Peace and Commissioners of Oaths Act, 1963 (Act 16 of 1963);

“competent authority or person” means the relevant authority or person in terms of the applicable law;

“Controller” means the Controller of Petroleum Products contemplated in Section 3(1) of the Act;

“declaration” means an affidavit, affirmation or solemn or attested declaration made before and signed in front of a commissioner of oaths contemplated in the Justices of the Peace and Commissioners of Oaths Act, 1963 (Act 16 of 1963);

“net present value” means a generally accepted method used to determine economic viability by considering future streams of revenues and costs of a business activity discounted into equivalent present values;

“permit holder” means any person who has written permission contemplated in section 2A(4)(b) of the Act to develop a site on publicly owned land;

“petroleum products” means, in these Regulations, liquefied petroleum gas used for the propulsion of vehicles, petrol and diesel;

“site licence” means a licence issued to a person who holds land or has permission from the owner of the land to develop a site for the purpose of retailing petroleum products;

“temporary licence” means a licence issued in terms of section 2B(5) of the Act;

“the Act” means the Petroleum Products Act, 1977 (Act 120 of 1977), as amended;

“the Amendment Acts” means the Petroleum Products Amendment Act, 2003 (Act 58 of 2003), and the Petroleum Products Amendment Act, 2005 (Act 2 of 2005);

“training” means learnerships contemplated in Section 16 of the Skills Development Act, 1998 (Act 97 of 1998) and “trained” has a corresponding meaning.

These Regulations apply to site and retail licences.

(1) An applicant for a site licence must—

(a) complete an application form contained in Annexure A; and

(b) lodge the application with the Controller together with the documents specified—

(i) in the case of an applicant in respect of whom section 2D of the Act is not applicable, in regulation 13(1); or

(ii) in the case of an applicant in respect of whom section 2D of the Act is applicable, in regulation 13(2).

(2) The application contemplated in subregulation (1) must be lodged together with an application for a corresponding retail licence.

(3) An applicant contemplated in subregulation (1) in respect of whom section 2D of the Act is not applicable may not commence with construction on a site until the Controller has issued a site licence.

(1) When an application for a site licence contemplated in regulation 3 is accepted, an applicant in respect of whom section 20 of the Act is not applicable, must have a notice of the application published in a prominent manner, in at least two of the most popular newspapers circulating in the area of the proposed activity in two official languages, one of which must be English.

(2) The notice contemplated in subregulation (1) must state—

(a) the name of the applicant;

(b) the application number issued by the Controller upon acceptance of the application;

(c) the purpose of the application;

(d) the place where the application will be available for inspection by any member of the public;

(e) the period within which any objection to the issuing of the licence may be lodged with the Controller; and

(f) the address of the Controller where objections may be lodged.

(3) The place contemplated in subregulation (2)(d) must be the physical address of the Controller’s office where the application was lodged.

(4) The period contemplated in subregulation (2)(e) must be at least 20 working days from the date of publication of the notice.

(5) Proof of the publication of the notice of application contemplated in subregulation (1) must be submitted to the Controller.

(1) Before accepting a site licence application, the Controller must be satisfied that—

(a) a corresponding valid retail licence application has been lodged for that site;

(b) the applicant—

(i) is the owner of the site;

(ii) in the case of—

(aa) publicly owned land, has the written permission of the owner; or

(bb) an applicant in respect of whom section 2D of the Act is applicable, holds the site;

(c) the application form has been completed in full; and

(d) all the documents specified in regulation 3(b) have been submitted with the application form.

(1) In evaluating an application for any site licence, the Controller must, subject to subregulation (2), verify that—

(a) the information and the documents submitted with the application form are true and correct; and

(b) the notice contemplated in regulation 4(1) was published.

(2) In the case of an application for a site licence made by a person in respect of whom section 2D of the Act is not applicable, the Controller must be satisfied that—

(a) there is a need for a site; and

(b) the site will promote the licensing objectives stipulated in sections 2B(2) of the Act.

The Controller must, if satisfied that an application for a site licence meets the requirements of the Act and these Regulations—

(a) inform the applicant that the application has been successful;

(b) require the applicant to, within the period determined by the Controller—

(i) pay the relevant fee determined in Annexure B into the relevant regional bank account; and

(ii) submit the documents contemplated in regulation 14; and

issue the site licence the documentation contemplated in paragraph (b)(ii).

A site licence must include-—

(a) the name of the licensee;

(b) the licence number;

(c) the identity number or company registration number of the licensee;

(d) the location of the site as represented by the Erf, Stand or Lot number;

(e) each type of petroleum product that may be retailed on that site;

(f) the date of issue of the licence;

(g) the conditions of the licence; and

(h) the Controller’s signature.

(1) An environmental management plan, approved by a competent authority or person, contemplated in regulation 14(b)(i) must include—

(a) details of—

(i) the authority or person who prepared the environmental management plan; and

(ii) the expertise of that authority or person who prepared the environmental management plan;

(b) a summary of the assessment of the significance of the potential impacts, the proposed mitigation and management measures to minimise adverse impacts;

(c) a description of the environment likely to be affected by the proposed site;

(d) an assessment of the potential impacts of the proposed retailing activity on the environment, socio-economic conditions and cultural heritage, if any;

(e) a financial provision which must include—

(i) details of the method providing for the financial provision contemplated in regulation 10(1); and

(ii) the determination of the quantum of the financial provision contemplated in regulation 10(3);

(f) planned monitoring and performance assessment of the environmental management plan;

(g) closure of the licensed site;

(h) the environmental objectives;

(i) a record of public participation undertaken and the results thereof; and

(j) an undertaking by the applicant to execute the environmental management plan.

(1) The financial provision required in terms of regulation 9(1)(e) to achieve the total quantum for the rehabilitation, management and remediation of negative environmental impacts must be provided for by one or more of the following methods—

(a) An approved contribution to a trust which must be in the format approved by the Controller from time to time;

(b) a financial guarantee from a South African registered bank or any other financial institution approved by the Controller guaranteeing the financial provision relating to the environmental management plan in the format approved by the Controller from time to time;

(c) a deposit into the account specified by the Controller in the format approved by the Controller from time to time; or

(d) any other method that the Controller may approve.

(2) In the case of subregulation (1)(c), proof of payment must be submitted to the Controller prior to the acceptance of the environmental management plan.

(3) The quantum of the financial provision must be determined in consultation with a competent authority or person and must include a detailed provision for costs that could be incurred in the event of—

(a) premature closure regarding—

(i) the rehabilitation of the land;

(ii) the prevention and management of pollution of the atmosphere;

(iii) the prevention and management of pollution of water and the soil; and

(iv) the prevention of spillage and leakage into the ground of chemical substances introduced onto the site;

(b) decommissioning and final closure of the operation; and

(c) post closure management of residual and latent environmental impacts.

(4) The holder of a site licence must annually update and review the quantum of the financial provision—

(a) in consultation with a competent authority or person;

(b) as required in terms of the approved environmental management plan; or

(c) as requested by the Controller.

(5) Any inadequacies with regard to the financial provision must be rectified by the licensee—

(a) in an amendment of the environmental management plan; or

(b) as determined by the Controller.

(1) A site licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it.

(2) A licensee must inform the Controller, in writing, of any change of address or telephone number within 30 days of the relevant change taking effect.

(3) A corresponding retail licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it.

(4) A licensee must at all times—

(a) comply with the Act and these Regulations; and

(b) carry out legitimate instructions from the Controller.

(1) In the case of a licence issued to a person in respect of whom section 2D of the Act is not applicable, a site licence must be transferred when the land or a written permission, in the case of publicly-owned land, in respect of which the site licence has been issued, changes ownership, subject thereto that—

(a) the new owner of that land, the new permit holder, applies in writing to the Controller to have that licence transferred within six months of taking ownership or possession of the site;

(i) pays the relevant site licence fee determined in Annexure B into the relevant regional bank account;

(ii) submit proof of payment of the relevant fee to the Controller; and

(iii) provide proof of the financial provision, contemplated in regulation 14(b)(ii), for the purposes of rehabilitating a site upon the cessation of retailing activities; and

(c) the applicant provides a certified copy of the title deed to the land or a certified copy of the deed of transfer of ownership of the land, to the Controller.

(2) In the case of a licence issued to a person in respect of whom section 2D of the Act is applicable, the site licence issued to—

(a) a land owner, must be transferred to the new owner of that land; or

(b) a lessee, must be transferred to the new lessee or to the new owner of that land.

(3) The site licence transfer contemplated in subregulation (2) must be subject to—

(a) the lodging of an application therefor within six months of change of ownership or lease;

(b) the payment of the relevant site licence fee determined in Annexure B into the relevant regional bank account; and

(c) the provision of a certified copy of the title deed or of the deed of transfer or of the lease agreement, to the Controller.

(4) Any new owner or permit holder or lessee of the land in respect of which a site licence has been issued, who fails to apply for the transfer of a site licence, within six months of taking ownership or possession of that site or of the lease, shall be in contravention of the Act and these Regulations.

(5) In the event of a transfer of a site licence, the provisions of these Regulations apply, subject to the necessary changes.

(1) An applicant for a site licence in respect of whom section 2D of the Act is not applicable must submit—

(a) a motivation for the site;

(b) a certified copy of the applicant’s identity document if the applicant is a natural person and, in the case of a non-South African citizen, a permanent residence permit or employment permit and proof of residence in South Africa, or proof of domicile in South Africa, as the case may be;

(c) a certified copy of the business entity’s registration documents, if the applicant is a corporate entity or a trust;

(d) certified copies of—

(i) the land use zoning certificate issued by a competent authority or person, authorising retailing from the site;

(ii) the Record of Decision of the environmental authorities in accordance with the Environmental Conservation Act, 1989 (Act 73 of 1989), permitting retailing operations on the site;

(iii) in the case of—

(aa) an owner, the title deed to the land on which the site is located;

(bb) publicly-owned land, the written permission of the land owner;

(iv) the permission by the National Roads Authority to develop the site, if the site allows or is intended to allow access by vehicles to a national road.

(2) An applicant for a site licence in respect of whom section 2D of the Act is applicable, must submit—

(a) a certified copy of the applicant’s identity document if the applicant is a natural person and, in the case of a non-South African citizen, a permanent residence permit or employment permit and proof of residence in South Africa, or proof of domicile in South Africa, as the case may be;

(b) a certified copy of the business entity’s registration documents, if the applicant is a corporate entity or a trust;

(c) certified copies of—

(i) in the case of—

(bb) publicly owned land, the written permission of the land owner; or

(ii) a lease agreement or an offer to purchase the site or an offer to lease the site;

(d) a declaration by the applicant stating that the applicant is in compliance with the Act, these Regulations and all other national, provincial and local government laws applicable for the operation of the activity concerned;

(e) if retailing operations were being conducted on the site at the commencement of the Amendment Act, a declaration by the applicant to that effect; and

(f) if the applicant is in the process of developing a site at the commencement of the Amendment Acts, a statement signed by the appropriate building inspector or other competent authority stating—

(i) the date on which building plans for the site were approved by the appropriate authorities; and

(ii) that construction in accordance therewith had begun at the commencement of the Amendment Acts.

When an application has been successful and upon request from the Controller, the applicant must-—

(a) submit proof of payment of the licence fee to the Controller; and

(b) in the case of an applicant who does not qualify in terms of Section 2D of the Act—

(i) submit an environmental management plan; and

(ii) provide proof of financial provision for the purposes of rehabilitating a site upon cessation of retailing activities.

RETAIL LICENCES

(1) An applicant for a retail licence, must—

(a) complete an application form in the form contained in Annexure A; and

(b) lodge that application with the Controller together with the documents specified—

(i) in the case of an applicant in respect of whom section 2D of the Act is not applicable, in regulation 25(1); or

(ii) in the case of an applicant in respect of whom section 2D of the Act is applicable, in regulation 25(2).

(2) An applicant in respect of whom section 2D of the Act is not applicable, must provide—

(a) the result of the net present value calculation; and

(b) all data and assumptions used in the calculation of the net present value.

(3) In the case of a retail business owned by a licensed wholesaler for training purposes, the licensed wholesaler must submit with the application a declaration stating that the licensed retailing activity will be used for training purposes.

(4) The application contemplated in subregulation (1) must be lodged together with an application for a corresponding site licence: Provided that in the case of a licensed site, a valid site licence, or a certified copy thereof, must accompany the application.

(1) When an application for a licence as contemplated in regulation 15 is accepted, an applicant in respect of whom section 2D of the Act is not applicable must have a notice of the application published in a prominent manner, in at least two of the most popular newspapers circulating in the area of the proposed activity in two official languages, one of which must be English.

In accepting a retail licence application, the Controller must be satisfied that—

(a) a corresponding site licence application has been lodged or a valid site licence exists;

(b) the applicant is the owner of the business;

(d) all the documents contemplated in regulation 15(1)(b) have been submitted.

(1) In evaluating an application for any retail licence, the Controller must, subject to subregulation (2), verify that—

(b) the notice contemplated in regulation 16(1) was published.

(2) In the case of an application for a retail licence made by a person in respect of whom section 2D of the Act is not applicable, the Controller must be satisfied that-—

(a) the retailing business is economically viable; and

(b) the retailing business will promote licensing objectives stipulated in section 2B(2) of the Act.

(3) In determining the economic viability contemplated in subregulation (2)(a), the Controller must be satisfied that the net present value has been correctly calculated and is positive.

The Controller must, if satisfied that an application for a retail licence meets the requirements of the Act and these Regulations—

(a) inform the applicant that the application has been successful; and

(b) require the applicant to, within a period determined by the Controller—

(i) pay the relevant retail licence fee determined in Annexure B into the relevant regional bank account; and

(ii) submit proof of payment of the licence fee to the Controller; and

issue the retail licence upon receipt of the proof of payment contemplated in paragraph b(ii).

A licensed wholesaler may, for training purposes, be issued a retail licence provided that—

(a) one retail licence for the first 100 sites supplied with petroleum products by that wholesaler; and

(b) one retail licence for every additional 200 sites supplied with petroleum products by that wholesaler,

but no more than nine retail licences in total, are issued.

A retail licence must include—

(a) the name of the licensed retailer;

(c) a corresponding site licence number;

(d) the identity number or company registration number of the licensed retailer;

(e) the location of the retailing activity as represented by the Erf, Stand or Lot number;

(f) each type of petroleum product the licensee is licensed to retail;

(g) the date of issue of the licence;

(h) the conditions of the licence; and

(i) the Controller’s signature.

(1) The licensed retailing activity must remain a going concern.

(2) A licensed retailer must only—

(a) retail from the site specified on the retail licence; and

(b) purchase petroleum products from a licensed wholesaler or a licensed manufacturer.

(3) A licensed retailer must—

(a) inform the Controller in writing of any change of address or telephone number within 30 days of the relevant change taking effect;

(b) pay the annual licence fee determined in Annexure B before the anniversary of the licence issued;

(c) comply with the Charter;

(d) submit the information set out in regulation 26;

(e) allow any person authorised by the Controller in accordance with the Act access to the relevant site for the purposes of inspections or conducting an investigation;

(f) at all times—

(i) comply with the Act and these Regulations; and

(ii) carry out legitimate instructions from the Controller;

(g) if so instructed, submit to the Controller on a date and in the manner specified in the instruction—

(i) information necessary for the regulation of prices of petroleum products;

(ii) data on petroleum products purchased or sold during a specified period and stock levels of the petroleum products;

(iii) information relating to progress in complying with the objectives of the Charter; and

(iv) any other information that might be required for regulatory purposes.

(4) A retail licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it.

(5) A corresponding site licence, or a certified copy thereof, must be prominently displayed at the place of business, where any person entering the site may read it.

(6) A licensed retailer must not allow self-service by consumers of petroleum products on the premises of the licensed retailer.

(7) A retail licence is not transferable.

(1) A temporary retail licence may be issued only in respect of a licensed retailing activity upon the payment, by the applicant, of the temporary retail licence fee determined in Annexure B into the relevant regional bank account.

(2) An application for a temporary retail licence must be made to the Controller on an application form in the form contained in Annexure A and must—

(a) be in writing;

(b) only be in respect of a licensed retailing activity;

(c) include proof of hardship that would result if the licensed activity ceased to be licensed;

(d) be accompanied by a certified copy of the original licence certificate;

(e) be accompanied by a certified copy of the applicant’s identity document if the applicant is a natural person; and

(f) be accompanied by a certified copy of the business entity’s registration documents.

(3) The Controller may set special conditions for a temporary retail licence according to the circumstances presented in the application contemplated in subregulation (2).

(1) A licensed retailer must commence with retailing activities at the corresponding licensed site within a period of 12 months after the date on which a retail licence is issued to the licensee, failing which the licence shall lapse.

(2) The Controller may, upon application in writing, extend the period of time contemplated in subregulation (1) for a consecutive period of six months for a total period not exceeding 18 months.

(3) The Controller may request the information necessary from the applicant, concerning an application contemplated in subregulation (2).

(1) An applicant for a retail licence in respect of whom section 2D of the Act is not applicable, must submit—

(a) a motivation for the retailing activity;

(d) in the case of an application made by a natural person claiming to be a historically disadvantaged South African, a declaration by that person to that effect;

(e) the net present value calculation, including—

(i) the result of the net present value calculation; and

(ii) all data and assumptions used in the calculation of the net present value;

(f) a declaration by the applicant stating that the applicant is not owned in any way by a licensed wholesaler;

(g) in the case of an application made by a non-natural person, a declaration on the extent of ownership of the business by historically disadvantaged South Africans as defined in the Charter; and

(h) in the case of a retail business owned by a licensed wholesaler for training purposes, a declaration by the licensed wholesaler stating that the licensed retailing activity will be used for training purposes.

(2) An applicant for a retail licence in respect of whom section 20 of the Act is applicable, must submit—

(c) in the case of an application made by a natural person claiming to be a historically disadvantaged South African, a declaration by that person to that effect;

(d) in the case of an application made by a non-natural person, a declaration on the extent of ownership of the business by historically disadvantaged South Africans as defined in the Charter;

(e) a declaration by the applicant stating that the applicant is in compliance with the Act, these Regulations and all other national, provincial and local government laws applicable for the operation of the activity concerned; and

(f) In the case of a retail business owned by a licensed wholesaler for training purposes, a declaration by the licensed wholesaler stating that the licensed retailing activity will be used for training purposes.

(1) A licensed retailer must submit to the Controller, not later than the end of February of each year, on a form in the form contained in Annexure A, the following information in respect of the preceding calendar year—

(a) A declaration that the ownership of the licensed activity has not changed;

(b) the volumes of each type of petroleum product sold;

(c) the number of employees distinguished by race, gender and disability;

(d) progress and an updated plan in respect of compliance with the objectives of the Charter;

(e) with regard to training of persons in the employ of the licensed retailer, a report on—

(i) the number of them trained in general; and

(ii) the number and title of qualifications obtained by them which are accredited by the South African Qualifications Authority established in terms of the National Qualifications Framework Act, 1995 (Act 58 of 1995); and

(f) a declaration that the retail licence is not held directly or indirectly by a licensed wholesaler.

GENERAL PROVISIONS

(1) When a site or retail licence has been lost, damaged or destroyed the licensee must apply to the Controller for a duplicate thereof.

(2) An application contemplated in subregulation (1) must be accompanied by—

(a) an affidavit stating the reason or reasons for the application;

(b) the applicant’s identity number or the business entity’s registration number, as the case may be, and the number of the lost, damaged or destroyed licence; and

(c) proof of payment of the duplicate licence fee determined in Annexure B.

A licensee may at any time, by written notice, surrender a licence to the Controller.

(1) If a licensee fails to comply with any provision of the Act or these Regulations, the Controller may, notwithstanding any other penalty that may be imposed under the Act or any other law, and subject to subregulation (2), cancel or suspend the licence.

(2) The Controller may not cancel or suspend a licence unless—

(a) the licensee has been informed in writing of the intention to cancel or suspend such licence by—

(i) setting out the particulars of the alleged such failure or contravention; and

(ii) calling upon the licensee to make the representations to the Controller that may be necessary within 30 days after the date of that notice;

(b) the Controller has considered—

(i) steps taken by the licensee to remedy the alleged failure or contravention concerned or to prevent any such failure or contravention from being repeated; and

(ii) any other relevant matters submitted by way of representations contemplated in paragraph (a)(ii).

(1) A licence ceases to be valid if—

(a) the licence is surrendered to the Controller;

(b) the licence is cancelled by the Controller in accordance with regulation 29(2); or

(c) the licensed activity is no longer a going concern.

(2) If a licence has ceased to be valid, the licensee must surrender the licence to the Controller within a period of 14 days from the date of receipt of the notification in which the licensee is informed that the licence is no longer valid.

(1) The Controller must make any decision required to be made by the Controller in these Regulations, within a period of 90 days: Provided that—

(a) in the case of an application for a licence by an applicant in respect of whom section 2D of the Act is applicable, the period commences from the date of acceptance of the application;

(b) in the case of an application for a licence by an applicant in respect of whom section 2D of the Act is not applicable, the period must commence from the date of receipt of the proof of publication of the notice contemplated in regulation 4(5) and regulation 16(5); and

(c) in the first six months after the commencement of these Regulations, the period is 250 days.

If the Controller declines to issue any licence that may be issued under these Regulations, the applicant must be informed in writing, with reasons, of that decision.

The period contemplated in section 12A(3) of the Act is 90 days.

The Controller may revoke or amend any decision or the award of any licence that was influenced by a false declaration, including any material non-disclosure in accordance with regulation 29(2).

The Controller may request additional information from an applicant that may be necessary to enable the Controller to make a decision regarding the issuing of a licence.

  • The Controller may request additional information from a licensee that may be necessary for regulatory purposes.

(1) A licensee may apply, in writing, to the Controller for a licence to be amended by—

(a) specifying the amendment sought; and

(b) setting out the reasons for the amendment sought.

(2) The Controller must consider the request contemplated in subregulation (1) and may issue an amended licence provided that—

(a) the amendment will not affect any rights, debts, liabilities or obligations of the licensee, nor render defective any legal proceedings by or against the licensee, and any legal proceedings that could have been continued or commenced by or against the licensee prior to such change; and

(b) the applicant has paid the amendment licence fee determined in Annexure B.

Any licence issued in terms of these Regulations—

(a) remains the property of the Department of Energy;

[Reg 38(a) subs by reg 2 of GoN R1061 in G. 35984.]

(b) may be cancelled or suspended at any time subject to Regulation 29;

(c) may not be tempered with or defaced in any manner; and

(d) may not be altered in any manner.

The Controller must, not later than 12 months after the commencement of the Amendment Act, and thereafter the end of June and December of each year, within 30 days of the end of those months, publish data on—

(a) valid retail licences;

(b) valid site licences;

(c) the number of valid retail licences held by historically disadvantaged South Africans;

(d) the number of retail licences issued in the calendar year concerned;

(e) the number of lapsed retail licences in the calendar year concerned;

(f) the number of valid site licences;

(g) the number of valid site licences held by historically disadvantaged South Africans;

(h) the number of site licences issued in the calendar year concerned; and

(i) the number of lapsed site licences in the calendar year concerned.

ANNEXURE A: FORMS

(Please note that a copy of the forms in Annexure A will be provided upon request. Kindly refer to our website for our contact details.) [Annex A subs by reg 3 of GoN R1061 in G. 35984.]

ANNEXURE B: LICENCE FEES

Payment must be deposited into the following relevant regional account closest to the region where the application is lodged:

Include your reference number, which will be provided by the Controller, on the deposit slip.

[Annex B subs by reg 4 of GoN R1061 in G. 35984.]

  • Client Login

U Fuel Logo

UFuel - Petroleum Licensing Consultants and Petrol ~Station Brokers

Wholesale License Applications | Retail License Applications | Buy or Sell a Petrol Station

Industry leaders

Petroleum licensing consultants & training academy, our services.

UFuel Academy - Petroleum Wholesale Readiness Programme , Wholesale License Applications , Retail License Applications, Site License Applications ,  Feasibility Studies , Buying, Selling and Valuations of Petrol Stations .

UFuel-Home-Page0

Industry Experts 15+ Years Experience

UFuel (Pty) Ltd is the leader in petroleum consulting and specializes in the buying and selling of petrol stations, all petroleum license applications,  new petrol station developments, feasibility studies and traffic audits. We offer fuel depot design and construction and the supply of new or refurbished tanks and pumps.

Your first consultation is on us!

Happy clients.

Our mission is to provide quality

Completed Nationwide

Years Exprience

Industry Leaders

OUR SERVICES

Experience you can trust, service you can count on.

Whether you need petroleum licensing solutions, training or want to buy or sell a petrol station our experienced team is here to help you make profitable choices in business.

Wholesale License Applications

Wholesale Licenses

Retail License and Site License Applications

Site & Retail Licenses

Ufuel-Buy-or-Sell-a-Petrol-Station

Buy or Sell a Petrol Station

UFuel Academy Banner

UFuel Academy

demo-attachment-2303-serious-businesswoman-with-documents-talking-on-P9Q6LX6@2x

Business Plans & Finance

Product showcase, intoructory video.

wholesale fuel license business plan south africa pdf

Online Training Programme for Petroleum Wholesalers

Petroleum wholesale readiness programme.

UFuel Academy provides online training programmes to individuals who wants to start or manage a petroleum wholesale business. The UFuel Petroleum Wholesale Readiness Programme will equip learners with an in-depth understanding of what it takes to effectively start and manage a fuel wholesale business within South Africa.

UFuel-Approved-Wholesale-Licenses

Pallet Link Contractors CC

Izingaah group (pty) ltd, future fuel tech (pty) ltd, zio petroleum (pty) ltd, quagga petroleum (pty) ltd, stilbaai diesel (pty) ltd, cjs energy (pty) ltd, inyarhi group (pty) ltd, sane air (pty) ltd, davinath technology (pty) ltd, our completed projects, our companies.

UFuel Logo White

Unit 17, Oaklane Office Park, 111 Grippen Road, Bartlett, Boksburg, 1459

Email: [email protected].

Phone: (+27) 011 568 2633

Copyright © 2020 U Fuel (Pty) Ltd. All Rights Reserved

Useful links.

U Fuel Academy

Wholesale License Applications

Buy or Sell Petrol Stations

Knowledge Centre

Retail & Site License Applications

OFFICE HOURS

MONDAY8:00am – 4:30pm
TUESDAY8:00am – 4:30pm
WEDNESDAY8:00am – 4:30pm
THURSDAY8:00am – 4:30pm
FRIDAY8:00am – 4:30pm
SATURDAYCLOSED
SUNDAYCLOSED

CONNECT WITH US

Terms & Conditions

POPI Policy

ProfitableVenture

Diesel Distribution and Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Oil & Gas Sector

Diesel Supply Business

Are you about starting a diesel distribution business? If YES, here is a complete sample diesel supply business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a diesel distribution and supply business . We also took it further by analyzing and drafting a sample diesel distribution marketing plan template backed up by actionable guerrilla marketing ideas for diesel distribution and supply businesses. So let’s proceed to the business planning section.

Suggested for You

  • Gas Station Business Plan [Sample Template]
  • Kerosene Retail Outlet Business Plan [Sample Template]
  • LPG Cooking Gas Plant Business Plan [Sample Template]
  • Crude Oil Refinery Business Plan [Sample Template]
  • Natural Gas Distribution Business Plan [Sample Template]

The rule of thumb in choosing a business to launch is to look out for a business whose products or services are in high demand. A diesel distribution and supply business is one such business but you must have the right exposure and finances.

If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst other areas.

Below is a sample diesel distribution and supply business plan template that will help you successfully launch your own business.

A Sample Diesel Distribution and Supply Business Plan Template

1. industry overview.

Diesel distribution and supply business is classified under the Fuel Dealers industry and players in this industry sell diesel, heating oil, propane and other fuels directly to end users. Related companies also deliver heating oil, propane and other fuels, such as auto – gas and kerosene, to domestic and commercial premises.

Please note that the Fuel Dealers industry has moderate barriers to entry. Entrepreneurs that intend entering the industry must gain access to cost-effective and reliable sources of heating oil and propane for distribution. They also need to attract a customer base, most commonly away from existing operators. High industry competition limits access to customers.

New operators lack economies of scale because they have few customers when first entering the industry. If customers are geographically distant, transportation costs may be prohibitive due to high per-unit expenses. Since the industry’s products are substitutable, operators differentiate themselves through service and efficiency.

The Fuel Dealers industry is a thriving sector of the economy of the united states of America and the industry generates over billion annually from more than 11,419 registered and licensed fuel dealers (diesel distribution and supply) in the country.

The industry is responsible for the employment of over 78,218 people. Experts project the Fuel Dealers industry to grow at a -5.6 percent annual rate between 2012 and 2017. It might interest you to know that only AmeriGas can boast of having the lion market share of the available market in the United States.

A recent report published by IBISWorld shows that a large majority of Fuel Dealers industry revenue is derived from heating oil and propane sales for household heating purposes.

Revenue generated from these sales fluctuates wildly every year, typically in line with changes in weather conditions and fossil-fuel prices. Revenue grew steadily in 2013 and 2014 as the particularly severe winter in early 2014 led to substantially greater fuel sales.

However, the industry is fighting to maintain its customer base as more buildings are refitted with less-expensive heating units, increasing external competition. Nevertheless, industry revenue is expected to gradually recover over the five years to 2023, largely due to an expected annualized increase of 4.4 percent in the world price of crude oil.

Some of the factors that encourage aspiring entrepreneurs to start a diesel distribution and supply business is the fact that the market is growing rapidly in the United States and it is not seasonal.

That makes it easier for entrepreneur who are interested in the business to come into the industry at any time they desire; the entry barriers might be high but that any serious – minded entrepreneur can comfortably raise the startup capital even if it means collecting loans from the bank.

Over and beyond, the Fuel Dealers industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as they are able to obtain the required license and permits; you can choose to start on a small scale and supply on a community level or you can choose to start on a large scale with distribution network spread across key cities all around the United States of America.

2. Executive Summary

Julius Padres® Diesel Distribution Company, Inc. is a registered fuel dealer company that will be involved in the distribution of diesel and other fuels to retailers, industries, household, hotels and restaurants et al. Our warehouse cum administrative office will be located in Waco – Texas.

We have been able to lease a warehouse facility that can fit into the kind of diesel distribution and supply company that we intend launching and the facility has easy delivery network. Julius Padres® Diesel Distribution Company, Inc. will distribute a wide range of fuels such as Diesel, Propane, Heating oil, Gasoline and Automotive fuels to end users at affordable prices.

We are aware that there are several diesel distribution and supply companies and contractors all around Waco – Texas, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have robust distribution network and strong online presence.

Beyond the distribution and supply of diesel, our customer care is going to be second to none in the whole of Waco – Texas and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products.

Julius Padres® Diesel Distribution Company, Inc. will ensure that all our customers are given first class treatment whenever they order diesel and other fuels from us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to.

Julius Padres® Diesel Distribution Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Julius Padres® Diesel Distribution Company, Inc. is owned by Julius Padres. He has a B.Sc. in Business Administration, with over 8 years of hands on experience in the retailing and distribution industry, working for some of the leading brand in the United States.

3. Our Products and Services

Julius Padres® Diesel Distribution Company, Inc. is in the industry to distribute a wide range of quality and safe diesel and other fuel products.

We are in the diesel distribution and supply industry to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aim and objectives. Our products and services offerings are listed below;

  • Heating oil
  • Automotive fuels
  • Other fuels

4. Our Mission and Vision Statement

  • Our vision is to become the ‘go to’ diesel distribution and supply company in the whole of Waco – Texas.
  • Our mission is to establish a diesel distribution and supply business that will distribute a wide range of quality fuel at affordable prices to retailers, households, industries, hotels and restaurants et al in Waco and other cities in Texas where we intend marketing our services and products.

Our Business Structure

Our intention of starting a diesel distribution and supply business is to build a standard diesel distribution and supply business in Waco – Texas. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind.

We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Julius Padres® Diesel Distribution Company, Inc.;

  • Chief Executive Officer (Owner)
  • Depot Manager
  • Human Resources and Admin Manager

Sales and Marketing Manager

Information Technologist

  • Accountants/Cashiers
  • Customer Services Executive
  • Drivers / Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Accountable for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Depot Manager:

  • Responsible for organizing the safe and efficient receipt, storage and dispatch of diesel and other fuel products
  • Responsible for liaising with customers, suppliers and transport companies
  • In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of diesel and other fuel products
  • Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
  • In charge of coordinating the use of automated and computerized systems where necessary
  • Accountable for keeping stock control systems up to date and making sure inventories are accurate;
  • Accountable for producing regular reports and statistics on a daily, weekly and monthly basis
  • In charge of overseeing the maintenance of vehicles, machinery and equipment.
  • Ensures that proper records of diesel and other fuel products are kept and warehouse does not run out of products
  • Ensures that the warehouse facility is in tip top shape and diesel and other fuel products are properly arranged and easy to locate
  • Interfaces with third – party suppliers (vendors)
  • Controls diesel distribution and supply and supply inventory
  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contact
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Manages the organization website
  • Handles ecommerce aspect of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manages the organization’s CCTV
  • Handles any other technological and IT related duties.

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

  • Assists in loading and unloading diesel and other fuel products
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
  • Assists the transport and logistics manager in planning their route according to a distribution schedule.
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Reports defects, accidents or violations

6. SWOT Analysis

Our intention of starting out in Waco and distribute our diesel and other fuel products only within Waco – Texas is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then start our diesel distribution and supply all around the state of Texas.

We are quite aware that there are several diesel distribution and supply companies and contractors all over Waco and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Julius Padres® Diesel Distribution Company, Inc. employed the services of an expert HR and Business Analyst with bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Julius Padres® Diesel Distribution Company, Inc.;

Our location, the business model we will be operating on (robust distribution network), reliable distribution tankers, varieties of payment options, wide range of diesel and other fuel products and our excellent customer service culture will definitely count as a strong strength for us.

So, also our management team are people who have what it takes to grow a business from startup to profitability within record time.

A major weakness that may count against us is the fact that we are a new diesel distribution and supply business and we don’t have the financial capacity to compete with leaders in the industry especially as it relates to economy of scales.

  • Opportunities:

The fact that we are going to be operating our diesel distribution and supply business in Waco – Texas provides us with unlimited opportunities to distribute our products to a large number of factories, retailers, households and businesses.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a similar business in same location.

7. MARKET ANALYSIS

  • Market Trends

Distribution of goods has been in existence for as long as human started trading goods, but one thing is certain, the distribution industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.

The trend in the fuel dealer industry shows that as oil and natural gas prices decrease, industry revenue is expected to decline, industry operators have tried to cut prices to discourage customers from switching to natural gas and customers will likely transition from propane to natural gas due to price differentials.

Please note that external factors such as world price of crude oil and world price of natural gas will always impact industry performance.

Lastly, it is now a common phenomenon for diesel distribution and supply companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology helps diesel distribution and supply businesses to maximize supply chain efficiencies.

8. Our Target Market

The diesel distribution and supply industry has a wide range of customers; a good number of households, hotels, and manufacturing companies make use of diesel and other fuel products and it is difficult to find people around who don’t.

In view of that, we have positioned our company to service businesses in Waco – Texas and every other location we will cover. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail (distribute) diesel and other fuel products to the following businesses;

  • Manufacturing companies
  • Power plants that run on diesel
  • Facility managers that make use of diesel

Our competitive advantage

Julius Padres® Diesel Distribution Company, Inc. is launching a standard diesel distribution and supply business that will indeed become the preferred choice in Waco – Texas. Our competitive advantage revolves around our ability to attract local support and patronage, easy compliance with government regulations and having a loyal customer base.

One thing is certain; we will ensure that we have diesel and other fuel products available in our warehouse at all times. One of our business goals is to make Julius Padres® Diesel Distribution Company, Inc. a one stop diesel distribution and supply company.

Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Julius Padres® Diesel Distribution Company, Inc. will generate income by offering the following services and products.

10. Sales Forecast

One thing is certain when it comes to diesel distribution and supply business, if your business is centrally positioned coupled with effective and reliable distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Waco – Texas and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the diesel distribution and supply industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Julius Padres® Diesel Distribution Company, Inc., it is based on the location of our business, and other factors as it relates to diesel and other fuel products startups in the United States;

  • First Fiscal Year: $440,000
  • Second Fiscal Year: $750,000
  • Third Fiscal Year: $1.5 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and distribution services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location to launch Julius Padres® Diesel Distribution Company, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice in Waco – Texas.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the retailing and distribution industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Waco – Texas.

In summary, Julius Padres® Diesel Distribution Company, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our business by sending introductory letters alongside our brochure to diesel and other fuel products retailers, factories, facility managers, hotels, households and key stake holders in and around Waco – Texas
  • Ensure that we have a diesel and other fuel products in our warehouse at all times.
  • Make use of attractive handbills to create awareness business
  • Position our signage / flexi banners at strategic places around Waco – Texas
  • Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Even though our diesel distribution and supply business is well structured and well located, we will still go ahead to intensify publicity for the business.

Julius Padres® Diesel Distribution Company, Inc. has a long-term plan of opening distribution channels all around the state of Texas which is why we will deliberately build our brand to be well accepted in Waco before venturing out. Here are the platforms we intend leveraging on to promote and advertise Julius Padres® Diesel Distribution Company, Inc.;

  • Place adverts on community based newspapers, radio and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Waco – Texas
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Advertise our diesel distribution and supply business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and distribution vans / trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to distribution companies and retailers, it is normal for retailers to purchase products from distribution companies that offer cheaper prices. We will work towards ensuring that all our diesel and other fuel products are distributed at highly competitive prices compared to what is obtainable in the United States of America.

We also have plans in place to discount our diesel and other fuel products once in a while and also to reward our loyal customers from time to time.

  • Payment Options

The payment policy adopted by Julius Padres® Diesel Distribution Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Julius Padres® Diesel Distribution Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards/Point of Sale Machines (POS Machines)
  • Payment via POS machines
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for diesel and other fuel products purchase without any stress on their part.

13. Startup Expenditure (Budget)

Having done our due diligence , this is what it would cost us to set up Julius Padres® Diesel Distribution Company, Inc. in the United of America;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Julius Padres® Diesel Distribution Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet tank farm facility cum mini depot in the total amount of $75,500.
  • The total cost for depot facility remodeling (construction of mini depot / tank far) – $70,000.
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $150,000
  • The cost for Start-up inventory (stocking with diesel and other fuel products and cylinders et al) – $200,000
  • Storage hardware (bins, rack, shelves) – $3,720
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost for the purchase of distribution tankers / trucks – $75,000
  • The cost of launching a website – $600
  • Miscellaneous – $10,000

We would need an estimate of $1.5 million to successfully set up our diesel distribution and supply business in Waco – Texas.

Generating Startup Capital for Julius Padres® Diesel Distribution Company, Inc.

Julius Padres® Diesel Distribution Company, Inc. is a private business that is solely owned and financed by Julius Padres. He has decided to restrict the sourcing of the start up capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my bank

N.B: We have been able to generate about $500,000 ( Personal savings $450,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $1 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Julius Padres® Diesel Distribution Company, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to supply/distribute our diesel and other fuel products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Julius Padres® Diesel Distribution Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check : Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of mini depot facility and construction of tank farm: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Purchase of distribution tankers/trucks: Completed
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Establishing business relationship with diesel and other fuel products well owners and production companies within and outside of the United States of America: In Progress

iWantFuel Fuel Licensing Solutions

iWantFuel offers you the following Wholesale, Retail and Site license services, Fast, Easy and Secure.

We will assist, facilitate with your renewal or new retail license applications, change-of-ownership retail license applications, new site license applications and transfers of existing site licenses.

Our Retail License Applications and Services

  • We facilitate new fuel retail license applications for fuel stations.
  • When a petrol station changes ownership, the new owner must apply for a new fuel retail license. iWantFuel facilitates these “change-of-ownership” retail license applications.
  • We assist and submit your annual renewals.
  • If a fuel retail license is rejected, we will engage, facilitate and resolve the appeal process.
  • We will facilitate all amendments to existing license.
  • Business Plans & Financing

Wholesale License Applications

"In terms of the Petroleum Products Act, (Act 120 of 1977) as amended in 2003, and which is administered by the Department of Energy (DOE), no person or business entity is allowed to wholesale prescribed petroleum products unless that person/business has a valid wholesale licence. The Act further states that no person may operate as a wholesaler (which means that you may not sell any form of petroleum product) unless that person or business entity has a valid wholesale licence. Wholesale licences may be applied for with storage facilities or without storage facilities."

  • New Wholesale License Applications.
  • Change of Ownership Applications
  • Annual license renewals
  • Appeal to Rejected Wholesale Licenses
  • Amendments To Existing Wholesale Licenses
  • A fuel wholesaler is any person or business that purchases and sells prescribed petroleum products in bulk to a licensed manufacturer, wholesaler, retailer or the end consumer.

Rochelle van der Merwe

Rochelle is our Petroleum Licensing Consultant and will assist and guide you through the processes and procedures for all petroleum licensing applications from start to finish with the Department of Energy to make sure that our clients are never in the dark with their applications.

Rochelle became a Petroleum Licensing Consultant as remembrance to her father who dedicated 15 years to this industry.

Rochelle believes that you can have knowledge about your field but experience is everything, the petroleum industry is a complicated industry but with knowledge and experience you can overcome anything. Rochelle believes that every client should be treated like she wants to be treated by a business, with honesty, integrity and value. Every client is important.

Rochelle has a can-do attitude and does all licensing applications fast and thorough. Rochelle and her skill sets is yet another key and valued element in the iWantFuel group making us your one stop shop.

Rochelle

  • Rochelle van der Merwe

Licence Requirements  

For a Wholesale License you need the following...

♦ a registered company ♦ Are you HDSA (Historically Disadvantaged South-Africans) Compliant? ♦ Do you have a Tax Compliance status Pin?

If you have the above in place or need help with it, click  HERE

For a Retail License you need the following...

♦ a registered company ♦ Are you HDSA (Historically Disadvantaged South-Africans) Compliant?

Have you done all assessments?

♦ Road Authorization ♦ Municipality Authorization ♦ Traffic count ♦ Environmental Authorization ♦ Environmental Impact Assessment

  • Get Started
  • How iWantFuel Works
  • Who are We?
  • Fuel Prices & Tools

Quick Links

  • GEO Coded Magisterial Zones
  • Grid Prices
  • Zone Lookup
  • Zone Difference calculator
  • Density Calculator
  • Temperature Compensation
  • Price Impact Calculator
  • How Far Can I Drive
  • [email protected]
  • Tel : +27 21 300 5894

Head Office

  • Airo Classics Office Park 208 Airport rd (cnr R404 & R102) George 653

COMMENTS

  1. Wholesale Fuel License Business Plan

    Procurement plan (Wholesale & Manufacturing) Steps to take after drawing up the wholesale fuel license business plan: Complete the form Application for wholesale license, 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 ...

  2. 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 Mineral Resources and 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 ...

  3. PDF Petroleum Licensing Ms. Mpho Nkomo 22/10/2020

    (Wholesale) •Does the ownership of the business correspond to that of the licence applicant? •Does the wholesaler own a petroleum retail business? •What is the level of ownership and control of the business by historically disadvantaged South Africans (HDSA's)? N.B must be 25% HDSA •How many people will be employed and what is the

  4. Petroleum Wholesale

    Petroleum Wholesaling is nothing new in South Africa. The well-known fuel companies like Shell, Engen, Sasol, BP, Caltex, and Total are all licensed Petroleum Wholesalers. Over the last few decades, several new wholesalers with exciting new brands, owned by South Africans, started to emerge on the market. Brand names like TopUp, VIVA, MBT, X ...

  5. PDF REGULATIONS REGARDING PETROLEUM PRODUCTS WHOLESALE LICENCES The

    by the licence number of the wholesale licence concerned; 21 In the event that the ownership and control of the applicant's business by HDSAs is less than 25%, then the applicant is required to submit plans indicating how at least 25% ownership and control by HDSAs will be reached by 2010. Transfer of wholesale licence

  6. DMRE Business Plan to Fuel your Lucrative Business

    A compliant business plan for the Department will ensure that you obtain your wholesale or retail fuel license, that is valid for as long as the business operates. Having a fuel business in South Africa is a lucrative venture, that requires careful planning and preparation to ensure success.

  7. Business Plans and Finance

    Business Plans & Finance Company Brochure Other Services Wholesale License Applications Retail & Site License Applications Buy or Sell a Petrol Station Petrol Station Developments Feasibility Studies & Traffic Audits Business Plans & Finance Petrol Station Valuations Bulk Fuel Wholesaler Bulk Storage Tanks Diesel Test Kits Fuel Management Systems & Dispensers Business Plans and Finance […]

  8. Wholesale License Applications

    New Wholesale License Applications. A fuel wholesaler is any person or business that purchases and sells prescribed petroleum products in bulk to a licensed manufacturer, wholesaler, retailer or the end consumer. In terms of the Petroleum Products Act, (Act 120 of 1977) as amended in 2003, and which is administered by the Department of Energy ...

  9. UFuel Petroleum Wholesale Readiness Programme:

    Training Modules: Module 1: Introduction and Overview: Petroleum Wholesale in South Africa. Module 2: Petroleum Wholesale License. Module 3: Tips and Examples on Fuel Pricing, Specifications, Testing and Transportation. Module 4: Source of Petroleum Products. Module 5 - Operational Plan for a Petroleum Wholesale Business.

  10. DOC APPLICATION FOR WHOLESALE LICENCE

    , South Africa. Originally established as a fuel wholesaling/broking enterprise, market demands transformed this organisation to offer an expanded portal of fuel related services that complement fuel supply. Our vision. is to be the service provider of choice to our existing customers by fulfilling our . mission. of service excellence. Our . goal

  11. DMRE fuel licensing

    If you want to sell petroleum products to consumers for end use, you must apply for a wholesale license from the Department of Mineral Resources and Energy. 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. The license ...

  12. PDF Fortune Fuels

    Fortune Fuels

  13. Regulations Regarding Petroleum Products Wholesale Licences

    South Africa: Consolidated Regulations. REGULATIONS REGARDING PETROLEUM PRODUCTS WHOLESALE LICENCES. Act 120 of 1977. GoN R1062, G. 35984 (c.i.o 19 December 2012). The Minister of Minerals and Energy has under sections 2A, 2C, 2E, 2F and 12C of the Petroleum Products Act, 1997 (Act 120 of 1977) made the Regulations in the Schedule.

  14. PDF Entering the LPG industry: becoming a dealership or distributor

    obtain a license to source LPG from a refinery, or import LPG. Alternatively, you can access product from a licensed wholesaler. Please visit www.energy.gov.za for further information about LPG wholesale licensing and LPG retail price regulation. Regarding transportation of LPG, should you intend undertaking deliveries, this is covered in

  15. Regulations Regarding Petroleum Products Site and Retail Licences

    A site licence must include-—. (a) the name of the licensee; (b) the licence number; (c) the identity number or company registration number of the licensee; (d) the location of the site as represented by the Erf, Stand or Lot number; (e) each type of petroleum product that may be retailed on that site;

  16. Fuel Licensing for South African Businesses

    Fuel licensing is a mandatory step to operating a legitimate fuel business in South Africa, as stipulated by the Department of Mineral Resources and Energy (DMRE). The DMRE promotes economic growth and development, social equity and environmental sustainability in the sector. ... You can obtain a retail or wholesale fuel license. A wholesale ...

  17. Wholesale Fuel License to Ignite your Business

    Uncategorized. 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.

  18. Home

    UFuel Academy provides online training programmes to individuals who wants to start or manage a petroleum wholesale business. The UFuel Petroleum Wholesale Readiness Programme will equip learners with an in-depth understanding of what it takes to effectively start and manage a fuel wholesale business within South Africa.

  19. Diesel Distribution and Supply Business Plan [Sample Template]

    Below are the sales projections for Julius Padres® Diesel Distribution Company, Inc., it is based on the location of our business, and other factors as it relates to diesel and other fuel products startups in the United States; First Fiscal Year: $440,000. Second Fiscal Year: $750,000. Third Fiscal Year: $1.5 million.

  20. PDF Wholesale Licence Annual Information (Submission Form)

    of South Africa. 3. A declaration by the applicant stating that the applicant is in compliance with all national provincial and local government legal requirements. 4. The volumes of each prescribed petroleum products purchased and sold outside of the Republic of South Africa. 5.

  21. Fuel Licensing

    South Africa's largest Fuel Trading, Sourcing and Supply platform. ∞ iWantFuel V3 is LIVE! ∞ ... (DOE), no person or business entity is allowed to wholesale prescribed petroleum products unless that person/business has a valid wholesale licence. The Act further states that no person may operate as a wholesaler (which means that you may not ...

  22. PDF 2020/2021

    In South Africa, K-FACTOR is duly registered and licensed petroleum wholesaler in South Africa with an import and export licence for South Africa. With our vast, combined expertise we strive to source accessible Fuel Solutions for all sectors related to the Industrial Fuel Market. Petrol, Diesel (10 PPM / 50 PPM / 500