How To Start A Gas Refill Business In South Africa

To refill is to fill something again, the way you refill your motorcycle’s gas tank or refill your cat’s water bowl when you notice it’s almost empty. You can also refill a prescription, by going to the pharmacy and getting another month’s worth of medication.

Below is How To Start A Gas Refill Business In South Africa

How much does it cost to start a gas refill business in South Africa?

An initial investment of approximately R250,000 – depending on LPG marketer, storage capacity, equipment agreement, working stock, cylinder deposits, and your business plan

Is the gas business profitable in South Africa?

Although fuel sales still make up the majority of the profits at filling stations in South Africa (according to Absa, between 80% and 90% of profits), the additional income from forecourt businesses like convenience stores, coffee shops and restaurants, can be a nice supplement.

How To become an LPG distributor in South Africa

Find below is How To become an LPG distributor in South Africa

Complete the form Application for wholesale license, 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 license, you must submit information on your business annually using the Wholesale license annual information (Submission Form), DMRE 30.

How long does it take To become an LPG distributor in South Africa

You should receive a response within 90 days from the date when the Department received proof of publication of the notice of application.

How much does it cost To become an LPG distributor in South Africa

R1 000

R500 annual license fee.

Advantages Of LPG distributor in South Africa

The advantages of LPG are

It is non-toxic, non-corrosive in nature.

It burns cleanly and has high octane rating i.g. more than 100 RON (Research Octane Number).

LPG engines have less knocking/ vibration.

It does not produce harmful emissions like CO, NOx, and higher hydrocarbons.

Particulate emissions are also less. So frequent cleaning of the combustion chamber is not required.

Disadvantages Of LPG distributor in South Africa

The  disadvantages of LPG are

It causes suffocation, in case of leakage as it is heavier than air.

It is hazardous as it is inflammable gas.

It is consumed more as it has a low energy density.

It does not provide power to the vehicle in mountains or rough terrains.

It is costlier than CNG.

It has to be supplied in a heavy steel cylinder.