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.
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.
* A Petroleum Wholesale License * A Computer with internet access * A Cellular phone or fixed line telephone | To obtain a petroleum wholesale license, it is not a requirement to have or build a storage facility (depot) in fact more than 80% of all registered wholesalers operate without ever having an own depot. It is almost always much more economical and profitable to have your products delivered to your customers, directly from your supplier.
There is no limit to how much money you can make. It depends entirely on you, and the effort, commitment, and creativity you apply in your business. While the retail price of petrol is fixed by regulation, the wholesale and retail profit margins on petrol are as result stable, while these margins on diesel tend to fluctuate more, because the retail price of diesel is not regulated, and both wholesalers and retailers can in principle sell at any price. A realistic profit margin per litre of fuel that a prospective wholesaler can use for income projections is currently between 65 to 75 cents per litre, where the wholesaler does not own the delivery truck, and makes use of contracted deliveries. Where the wholesaler self-delivers the product, a realistic figure would be around 90 cents per litre. It means therefore that for every 100 000 litres of fuel sales per month, a wholesaler without an own delivery truck should be able to earn around R65 000 to R75 000 with almost no expenses. A wholesaler with own delivery capacity (own truck) should therefore be able to earn around R90 000 for the same 100 000 litres of fuel sales, but with obviously higher operating expenses. It is not uncommon or unrealistic for a committed independent wholesaler to build a sustainable monthly turnover of 300 000 litres or more within four to six months and earn up to more than R210 000 per month. Some energetic and determined wholesalers grow to sell as much as a million litres per month or even beyond within two to three years.
In terms of the objectives of the Petroleum Products Act, and the Liquid Fuels Charter, any application for a petroleum wholesale license must have more than 25% HDSA (Historically Disadvantaged South African) ownership representation. The definition of a HDSA person in terms of the South African Constitution is as follows: “A South African adult citizen who is: a black, Colored or Indian male or female, or a white female born before April 1994, or any disabled person” Non-South African citizens who wish to apply, must have a permanent residence permit, as well as a South African registered company with a HDSA shareholder who owns more than 25% of the shares of the company.
As a licensed petroleum wholesaler, you can buy from any manufacturer (branded fuel companies like Sasol, Total, Engen BP etc.) or any other independent wholesaler (depot), or importer, anywhere in South Africa. There are large independent wholesale depots in all major cities and large towns in South Africa, where you can purchase products
1. The supply of petrol, diesel and illuminating kerosene is specifically zero-rated in terms of sections 11(1)(h) and (l) of the VAT Act. 2. The zero-rating does not apply to LP Gas, lubricants, and other related products
A licensed Petroleum Wholesaler can sell to any end user, including members of the public, farmers, industry, transport, or construction companies, anywhere in South Africa
There are 2 limitations * The minimum quantity per sales transaction must be not less than 1500 litres (except in the case of LP Gas, where there is no minimum quantity rule) * You may not retail (directly or indirectly hold a retail license) or for example put up fuel pumps where the public can fill up their vehicles. In other words, you may not operate a typical retail filling station or retail truck stop facility with a wholesale license
A Petroleum Wholesale license has no expiry date and remains valid for as long as it is used within the requirements of the Petroleum Products Act
Although operating a petroleum wholesale business does not require special training or skills acquisition, we will provide you with a basic concept and guidance document, as well as telephonic and e-mail support.
* Once we receive instruction, payment, and the required documents (ID copies, Company registration, signed application forms etc.) we prepare and submit the application to the particular Provincial Office of the Department of Energy. * The Department of Energy issues a reference number and instruction for a legal notice, which must be published in two national newspapers, in two languages, one of which must be in English. The applicant is responsible for the cost of the legal adverts. * After submission of physical copies of the adverts to the Department of Energy, there is by law a 20-workdays waiting period before the Department of Energy will proceed with processing the application. * Once the 20-workdays waiting period has expired your application is handed to an analyst who will process the application. * Once the license application has been approved, the Department of Energy will issue a notice of approval. If the applicant has own delivery vehicles, he/she must provide proof of insurance (copy of an insurance contract) for the transportation of dangerous goods. If the applicant does not have own delivery vehicles, a certified copy of a contract with a transport company must be submitted, together with a certified copy of the transporter’s full insurance contract for the transportation of dangerous goods. * Upon approval of the wholesale license, the licensee must pay a license fee directly to the Department of Energy. Thereafter an annual license fee of will be payable. * The average total time of acquiring your wholesale license is about 3½ months
