How To Become A Gas Supplier In South Africa

A natural gas supplier is a company that sources natural gas for delivery to customers. They are generally energy companies that buy natural gas commodity contracts on the wholesale market. Then they re-sell it to retail customers

Can you choose gas supplier?

If you live in a state where the natural gas market has been deregulated, you have the ability to choose from certified natural gas providers to supply your energy.

Can I change my natural gas supplier?

Normally, it costs nothing to switch natural gas providers. Most plans do not have an enrollment fee or activation charge. If you are still in a contract with your current provider, you may have to pay an early termination fee.

Is it easy to switch gas suppliers?

Switching energy providers is easy and you’ll never lose your supply in the process – guaranteed. You can switch gas or electricity only, or switch both together on a dual fuel deal.

How To Become A Gas Supplier In South Africa

The fuel industry in South Africa is a “closed” industry and it’s advisable to have contacts, or have worked in the industry, either for a fuel supplier or transport company before starting out on your own.

Transporting fuel isn’t as simple as it seems

Tanker transportation of petrol and diesel is a job which requires the application of specialised skills, so it’s important to have good knowledge regarding the operation of equipment and the regulations that apply.

“The entire process is very strictly controlled, even driver training is generally undertaken by the fuel companies,” says Moldon.

Regulations

The regulations are long, complex and apply to not just to the driver and the vehicle but also to safety.

Drivers

Drivers of vehicles transporting dangerous goods such as diesel and petrol require a category D professional driving permit. The minimum age for new drivers transporting dangerous goods is 25 years to ensure that only experienced drivers are transporting this flammable product.

Drivers of dangerous goods vehicles above 3 500 kg GVM are required to undergo training by a body approved by the National Department of Transport in order to obtain the certificate needed to qualify for a “D” category.

Learn the rules to Become Gas Supplierr South Africa

The best way to understand the regulations that apply to the vehicle and to safety issues is to contact the SABS and buy the “Dangerous Goods Digest, The Orange Book of Southern Africa”.

This loose-leaf system is all you’ll need to fully understand and comply with the Dangerous Goods Regulations and the various relevant SANS (SABS) Standards which you have to comply with in order to transport fuel. This can be ordered online.

Regulations to Become Gas Supplier South Africa

All the Standard specifications and codes of practice:

SABS 1398 “Road tank vehicles for petroleum-based flammable liquids”

SABS 1518 “Transportation of dangerous goods – design requirements for road tankers”

SABS 0228 “The identification and classification of dangerous substances and goods”

SABS 0229 “Packaging of dangerous goods for road and rail transportation in South Africa”

SABS 0230 “Transportation of dangerous goods – Inspection requirements for road vehicles”

SABS 0231 “Transportation of dangerous goods – Operational requirements for road vehicles”

How do I become a Gas Supplier in South Africa?

What you should do

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.

How do I start a fuel business in South Africa?

According to Absa there are currently three different ways to open a petrol station in the country:

Investing in the physical building, land and associated assets (prop-co).

Purchase of the business operation only (op-co).

Purchase of both (prop-co / op-co).

How do fuel distributors make money?

Gas stations are always squeezed on margins for fuel. Most stations barely make 2 cents a gallon in profit on the fuel. If the gas station is making two cents a gallon, the fuel distributor is probably making 1% on the deal, which means 3-4 cents.

Do petrol stations make money?

Opening hours. Opening hours of a petrol station have can have quite an impact on its income. In quieter areas, opening for 15 to 16 hours per day is advisable but in busier stations, 24 hour opening can be profitable despite higher staff costs, lighting costs and the fact that fewer cars are on the roads.

What happens if you forget to pay for petrol?

The act of leaving a petrol station without paying for fuel is covered by the Theft Act . The offence of Making Off Without Payment (MOWP) is outlined in section 3 of the Act. In serious cases, a person found guilty of Making Off Without Payment could face a maximum two years in prison and an unlimited fine.

What happens if you drive off without paying for fuel?

Intentionally not paying for fuel is obtaining benefit by deception and carries a criminal conviction and penalties ranging from fines up to 10 years imprisonment. Driving off and making no attempt to pay is a different beast. It is where you put fuel in your car and simply leave without making any attempt to pay.

How much does it cost to buy a petrol station in South Africa?

A local petrol station business set up costs range in the region of R15 million and R100 million depending on the size and site. Further to this the operation payable to the oil company ranges between R2. 5 million and R15 million, depending on the cost to develop, projected volumes and profitability.