In this post, I am going to take you through how to become a diesel distributor in South Africa and also bring you other information about diesel distribution that might be of great interest to you.
Without wasting much time, let’s get into the details
Who Is A Diesel Distributor And How Does It Work?
A diesel distributor is a business that sells diesel to consumers for end use. You must apply for a wholesale licence from the Department of Mineral Resources and Energy.
The license permits you to buy diesel products in quantity from a licensed manufacturer (1500 litres or more per transaction of petroleum goods) and sell them to end customers.
The permit is valid for as long as your company is open for business.
What You Should Do To Get A Diesel Distributorship Licence
- Complete the form Application for wholesale licence, DMRE 38.
- Send the application form to the Department of Mineral Resources and Energy regional office.
- The Department will send you a letter stipulating that you must publish a notice of application in four newspapers.
- You must provide proof of the publication of the notice of the application to the department.
- Once you have a licence, you must submit information on your business annually using the Wholesale licence annual information (Submission Form), DMRE 30.
How Long Will It take?
Within 90 days of the Department receiving proof of publication of the notice of application, you should receive a response.
How much does it cost?
- R1,000
- R500 annual licence fee.
Forms to complete
- Application for wholesale licence: DMRE 38
- Wholesale licence annual information (submission form): DMRE 30
- Application for a temporary licence
How much can a Diesel distributor make in South Africa?
A reasonable figure for self-delivery by the wholesaler would be roughly 50 to 60 cents per litre. As a result, a wholesaler without his or her own delivery truck should be able to earn roughly R70 000 to R90 000 per month for merely selling 200,000 gallons of diesel.
Benefits of being A Diesel Distributor In South Africa
Below are some of the benefits diesel distributors enjoy in South Africa.
- Huge Profit Margin
- Low Marketing Cost
- Less Costly
- Large Capital Investment Source.
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