Wholesale License Applications
Frequently Asked Questions - Wholesale Licenses
Any person or business that purchases and sells prescribed petroleum products in bulk (1500 liters or more, per transaction of petroleum products) from or to a licensed manufacturer, from or to a licensed wholesaler or to licensed retailers or also sells prescribed petroleum products to end consumer for own consumption.
Section 2A (b) of The Petroleum Product Amendment Act, 2003 (Act No 58 of 2003) – the “Act” states that no person must operate as a wholesaler unless that person has a valid wholesale licence.
Any person who wants to sell prescribed petroleum products in bulk to other licensed wholesalers, retailers and end consumers (for own consumption) including those who are currently buying and selling prescribed petroleum products in bulk must apply for a wholesale licence.
The Department of Energy is compelled to respond within a period of 90 days. This period must be calculated from the date the proof of publication is lodged with the Department of Energy. The 90 day time period stops once the Controller’s office requests further information until the date such information is provided by the applicant. There is further a mandatory waiting period of 20 working days after the date of publication, for the purposes of objections by any interested or affected party.
The Controller of Petroleum Products is the Minister of the Department of Energy, or an official that has been appointed by the Minister. The DDG: Hydrocarbon and energy planning is nominated as the Controller of Petroleum Products.
A license certificate can be amended at any time if there’s been any form of change to the license holder’s details (entity/individual etc.). When there is a majority change of ownership within the licensed entity an amendment is not applicable and therefore a new application must be lodged.
According to The Petroleum Products Amendments Act, 2003 (Act No 58, 2003) Any person who is found to be in contravention of the Act, shall be guilty of an offence; and be liable on conviction, to a fine not exceeding R1,000,000.00 or imprisonment for a period of not exceeding 10 years, or to both such fine and such imprisonment.
The licence or the certified copy should be displayed on the business premises in a manner which anyone entering the premises may read it.
You have to inform the Controller of Petroleum Products in writing of any change of trade name, postal address of registered office, business telephone number, mobile phone number, fax number or email address within 30 days of the relevant change taking effect; OR the change can be included on the Wholesale License Annual Information Submission Form (DME 394) as part of annual information provided that the 30 day period is complied with.
If you are already operating a wholesaling business at the commencement of the Act, which is the 17th March 2006, you will be deemed to hold a wholesale licence. However, you must apply for a wholesale license within a period of six months from the commencement of the Act.
No, it is not transferable.
Wholesale License Applications
Our Wholesale License Services
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 (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.
Wholesale License Application - Flow Chart & Time Lines
Timeframe – New Wholesale License
Projects are scheduled to be completed within +- 90 days. Please review the detailed flow chart above.