You must apply for a wholesale license from the Department of Mineral Resources and Energy if you wish to start an oil company in South Africa.
You can use the license to start an oil company in South Africa. The license is valid for the duration of your company’s operations.
What you must do
Fill out the Application for Wholesale License, DMRE 38 form.
Send the application form to the regional office of the Department of Mineral Resources and Energy.
The Department will send you a letter requiring you to publish an application notice in four newspapers.
You must produce proof of publication of the application notice to the department.
Once you’ve obtained a license, you must provide information about your company on a yearly basis using the Wholesale license annual information (Submission Form), DMRE 30.
How much time does it take?
You should get a response within 90 days of the Department receiving proof of publication of the application notice.
What is the annual license fee?
R1 000
How can I establish a fuel distribution company in South Africa?
Fill out the Application for Wholesale License, DMRE 38 form.
Send the application form to the regional office of the Department of Mineral Resources and Energy.
The Department will send you a letter requiring you to publish an application notice in four newspapers.
Is the oil industry profitable?
Since people’s living standards are improving, their consumption of edible oils is also increasing. As a result, the extraction of vegetable oil is a profitable endeavor that typically rewards manufacturers with high profits.
How do oil companies profit?
Oil service companies profit when there is a significant demand for crude oil, which drives exploration and production. Refiners profit when there is a large demand for fuel and value-added petroleum products, and they don’t mind if the price of crude falls.
