Petroleum & Fuel Licences — questions
Frequently asked questions about petroleum products licences
A fuel retail business needs both a site licence for the premises and a retail licence for the operator, applied for together to the DMRE under the Petroleum Products Act 120 of 1977. Wholesale and manufacturing licences apply further up the supply chain and are processed separately.
Do I need both a site licence and a retail licence?
Yes. The site licence authorises the specific premises and the retail licence authorises the operator to sell fuel there. Neither is effective on its own, and they are applied for as a linked pair.
Can I buy an existing service station without new licences?
Generally the incoming operator needs a new retail licence, and the site licence position must be checked and often re-confirmed. Failing to transfer both licences correctly can leave the buyer unable to trade legally.
How long does a retail and site licence application take?
A complete application typically takes three to six months, but delays in municipal zoning approval, environmental authorisation, or objections from nearby licensees commonly extend this timeline.
Who administers petroleum products licensing?
The Department of Mineral Resources and Energy administers licensing under the Petroleum Products Act 120 of 1977 and its regulations on licensing of controlled petroleum products.
What is a wholesale licence used for?
A wholesale licence authorises the bulk purchase of petroleum products for resale to retailers or other wholesalers, without a direct retail operation selling to the public.
Does BEE status affect my licence application?
Yes. Broad-Based Black Economic Empowerment credentials are a relevant factor in retail licence applications and can affect the outcome, particularly for new site allocations.
Can an existing licensed site object to a new licence nearby?
Yes. The retail site allocation framework allows interested parties, including nearby licensed operators, to raise objections during the application process, which can extend the timeline.
What happens if I trade without the correct licence?
Manufacturing, wholesaling or retailing petroleum products without the required licence is an offence under the Petroleum Products Act and can result in criminal liability and closure of the operation.
Do LPG and paraffin need the same licences as petrol and diesel?
Liquefied petroleum gas, illuminating paraffin and other controlled petroleum products fall under the same licensing framework, though the specific technical and safety requirements differ by product.
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Last reviewed: 2026-09-17
Written and reviewed by Dynamic Legal Services (Pty) Ltd, registration 2016/074955/07. Registered with the Department of Water and Sanitation, EAPASA applicant. Offices in Faerie Glen, Pretoria and Sandown, Sandton. Telephone 087 153 6207, support@dlegal.co.za. General information on South African regulatory practice, not advice on a specific matter — the first consultation is free.