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.
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 Fuels, Econo, Gulf Stream, Elegant, and others are now seen all over the country.
There is however also a very exciting, lively, and profitable market, with endless potential for independent wholesalers who operate without a specific retail brand name of their own. These wholesalers are focused on selling petroleum products to farmers, factories, mines, transport companies, industry, some privately owned unbranded filling stations and other end users. Some wholesalers even export petroleum products to other Southern African countries.
The exciting thing about this, is that South Africans can now actively participate in and benefit from Petroleum Wholesaling
In practice, the Independent Petroleum Wholesaler goes out and market products to customers. Once the client places an order, the wholesaler would in turn place the order with his supplier and arranges delivery of the product from the supplier to the client.
Payment normally starts from the client who places the order, via the wholesaler to the supplier, while the transport contractor gets paid as soon as he delivers the product.