How to Start a Gas Business in South Africa: A Comprehensive Guide
Gas refill businesses have become a common sight across South Africa, offering an essential service to both households and commercial entities. If you’re considering venturing into the gas business, here’s a step-by-step guide to get you started.
Understanding the Licensing Process
Before you embark on this business endeavor, it’s crucial to understand the licensing process involved. The Department of Mineral Resources and Energy is responsible for granting site and retail licenses for buying and selling petroleum products to the public. A retailer can only purchase products from a licensed manufacturer or wholesaler. The license remains valid for the duration of your business operation. You will need to have a registered company to apply for the licence. You can register your company here.
- Complete the Application Form: Begin by completing the “Application for Site or Retail License” form (DMRE 39).
- Submission: Submit the application form to your regional Department of Mineral Resources and Energy office.
- Notice Publication: Upon receipt of your application, you’ll be required to publish a notice of application in four newspapers.
- Proof of Publication: Provide proof of the published notice to the Department.
- Annual Information Submission: Once you have obtained your license, ensure that you submit your business information annually using the “Retail License Annual Information Submission Form” (DMRE 33).
Timeframe and Costs
The Department aims to make a decision within 90 days from the date proof of publication is received. The costs associated with this process include a R1,000 site license application fee, a R500 retail license application fee, and R500 for the retail license annual information submission.
Startup Investment and Profitability
Starting a gas refill business requires an initial investment of around R250,000. However, this figure can vary based on factors such as LPG marketer, storage capacity, equipment, and more. Despite the initial investment, gas refill businesses can be profitable due to the high demand for LPG gas for cooking and other purposes. Wholesale gas prices allow room for adding a reasonable profit margin.
Steps to Launch Your Gas Business
- Obtain the Wholesale License: Obtain a DMRE 38 wholesale license by applying through your regional Department of Mineral Resources and Energy office. This requires publishing a notice of application and paying a R500 annual license fee.
- Secure a Gas Supplier: Establish a relationship with a reliable gas supplier, such as a distributor or importer.
- Find a Suitable Location: Choose a location accessible to your target market and with adequate infrastructure for gas storage.
- Equipment Acquisition: Acquire the necessary equipment, including tanks, pumps, and dispensers.
- Operations Plan: Develop an operations plan for refilling and replacing empty cylinders.
- Compliance and Regulations: Ensure compliance with regulations related to gas storage, handling, and sales.
- Insurance: Obtain insurance coverage for your business and equipment.
Pros and Cons
Pros:
- High Demand: LPG gas is widely used, ensuring a steady stream of customers.
- Potential for Recurring Revenue: Rental of tanks can lead to recurring income.
- Low Overhead Costs: Startup costs can be relatively low compared to other businesses.
- Flexibility: Tailor your business to residential or commercial customers.
- Potential for Growth: Successful businesses can expand and diversify.
Cons:
- Safety and Regulations: Strict adherence to safety regulations is essential.
- Seasonal Fluctuations: Demand can fluctuate with seasons.
- High Startup Costs: Licensing and equipment costs can be substantial.
- Dependence on Suppliers: Reliability of gas supply is crucial.
- Competition: The industry can be competitive.
- Environmental Concerns: Environmental regulations should be met.
Starting a gas refill business in South Africa requires careful planning, adherence to regulations, and dedication. With the right approach, this venture can be not only financially rewarding but also contribute to meeting the energy needs of communities and businesses. Join our WhatsApp Channel to download the application form and Tune into Business In Motion On Lekoa fm every Friday at 11:00 am for more business advice and tips to make your business more profitable. Follow Thabiso Zwane on Facebook on tips on how to start a gas business, tips on how to grow your business and more.
33 Responses
I would like to establish a business of gas refill
Hello Sekuromo! 👋
That’s great to hear! Starting a gas refill business can be a rewarding venture. Here are a few initial steps to help you get started:
Licensing: Begin by completing the “Application for Site or Retail License” form (DMRE 39).
Location: Choose a strategic location accessible to your target market.
Supplier: Establish a relationship with a reliable gas supplier.
For more detailed guidance and support, join our WhatsApp channel. We provide exclusive tips and resources to help entrepreneurs like you succeed! 📈
Join our WhatsApp Channel here: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17 💬
Feel free to reach out if you have any specific questions. Best of luck with your new venture!
Warm regards,
Thabiso Zwane
Hi Thabiso, I have a WholeSale Licence I jst need someone who can do a business plan
Hi Supra.
Thank you very much for your message. I can see that you also send a Whatsapp Text. I will attend to you there sir. Thank you.
Good Evening. I would love to start a Gas business in Mahikeng (Motlhabeng Village).
Currently I stay and work in Pretoria but has a place at home in Mahikeng.
Please advice accordingly
Hello Kenanao! 👋
Thank you for reaching out and sharing your interest in starting a gas business. 🌟 It’s wonderful to see your enthusiasm for this venture!
Starting a gas business in your home village while working in Pretoria is a commendable goal. Here are some initial steps you can take to get started:
Understand Licensing Requirements: Ensure you complete the “Application for Site or Retail License” form (DMRE 39) and follow the necessary steps, including publishing a notice of your application and submitting proof of publication to the Department of Mineral Resources and Energy.
Find a Suitable Location: Your place in Mahikeng could be a great starting point. Make sure it meets the infrastructure requirements for gas storage and is accessible to your target market.
Establish a Gas Supplier: Form a relationship with a reliable gas supplier to ensure a steady supply of gas.
For detailed information on licensing, application forms, and expert tips, join our WhatsApp channel. This channel provides exclusive content and support tailored to help you succeed in your business journey. 📈
Join our WhatsApp Channel here: WhatsApp Channel Link 💬
Additionally, follow Thabiso Zwane on Facebook for daily business tips, live Q&A sessions, and community support to keep you motivated and informed.
Follow us on Facebook: AllNew Media Solutions Facebook 👍
We’re here to support you every step of the way. Feel free to reach out if you have any further questions!
Warm regards
hi
i need 1 of you agents to come see me and give me more info on how to start up a gas refill business.
please treat as urgent
Hello Bilal,
Thank you for reaching out and showing interest in starting a gas refill business. We understand your urgency and are here to help!
For more insights on this topic and other aspects of starting a gas refill business, join our WhatsApp channel. We share expert advice and practical tips to help you navigate these considerations successfully! 📈
Join our WhatsApp Channel here: WhatsApp Channel Link 💬
I’ll like to adventure in business of a refill gas process
Am located in limpopo zebediela makweng where is no station for refill gases,my community they have to take a taxi to lebowakgomo to fill gas.
HI Lawrnce. Yes you certainly can! Please follow our channel on Whatsapp for more information and additional tips and advise on how to be a successful entrepreneur. WhatsApp Link: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17
Thanks alot who can assist with starting this business.
You are welcome! 🙂
can we fill another company’s bottles eg AFROX, ORYX etc
Hello Vincent! 👋
Yes, you can refill gas bottles from other companies like AFROX or ORYX, but you’ll need to ensure compliance with regulations and possibly obtain authorization from the companies whose bottles you plan to refill. It’s essential to establish a clear agreement with the companies regarding safety standards and procedures.
For more insights on this topic and other aspects of starting a gas refill business, join our WhatsApp channel. We share expert advice and practical tips to help you navigate these considerations successfully! 📈
Join our WhatsApp Channel here: WhatsApp Channel Link 💬
Feel free to reach out if you have further questions. Best wishes on your business journey!
Warm regards,
Thabiso Zwane
I am person who likes to start a backyard gas refill supply business.I have enough space to do that.I will be happy to be taught as well and to be assisted financially or otherwise
Greetings,
I’m interested in starting cooking gas refill business franchise. How do I start? Where doi I apply for licensing?.
Yours sincerely
Daisy
Hello Daisy,
Thank you for your interest in starting a cooking gas refill business franchise. Here’s how you can get started:
Licensing: Begin by applying for a “Site or Retail License” from the Department of Mineral Resources and Energy. You can find the application form (DMRE 39) and submit it to your regional office.
Franchise Opportunities: Research cooking gas refill franchises available in your area. Contact franchise companies directly to inquire about their application process and requirements.
For more detailed guidance and support, join our WhatsApp channel: Join our WhatsApp Channel here: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17 💬: We share exclusive tips and resources to help entrepreneurs like you succeed!
Am very happy with the steps given and structure.
Surely will consider as am interested.
Hello! 👋
Thank you for reaching out regarding our article on starting a gas business in South Africa. We’re glad you found it helpful! 🌟
As a new startup, you might also need professional branding or company registration services to ensure your business stands out. At AllNew Media Solutions, we offer comprehensive branding services, including logo design, company profile creation, and website development. 🚀
For additional information on the *gas business*, including application forms, and to stay updated with more tips and services we offer, please *follow our WhatsApp channel*. Just click the link below to join and get all the details you need to succeed! 📈
WhatsApp Channel Link: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17
Looking forward to helping you on your entrepreneurial journey! 💼
Best regards,
The AllNew Media Solutions Team
📞 Call/WhatsApp: 0672459699
🌐 Visit our website: www.allnew.co.za
🖥 Facebook: https://www.facebook.com/AllNewMediaSolutions
Hello…
Thank you for the business brief on the gas business.. Can you assist in developing a Business Plan for me for this kind of business?. Also, can you investigate & recommend the best importer/supplier one can deal with, with reasonable pricing, supply reliability & high safety standards. We are piloting from the Eastern Cape, Mthatha
I got company that was formed last year Okantini (pty) ltd is it possible to get funding from the government if so please provide me with where and how
Morning
Would like to start a walk in and distribution of LPG in the western cape area
Hi Gilbert. We have listed the information as well as the forms in our WhatsApp Channel: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17
sQlFYVeiKTbOZ
Hello! 👋
Thank you for reaching out regarding our article on starting a gas business in South Africa. We’re glad you found it helpful! 🌟
As a new startup, you might also need professional branding or company registration services to ensure your business stands out. At AllNew Media Solutions, we offer comprehensive branding services, including logo design, company profile creation, and website development. 🚀
For additional information on the gas business, including application forms, and to stay updated with more tips and services we offer, please *follow our WhatsApp channel*. Just click the link below to join and get all the details you need to succeed! 📈
WhatsApp Channel Link: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17
Looking forward to helping you on your entrepreneurial journey! 💼
Best regards,
The AllNew Media Solutions Team
📞 Call/WhatsApp: 0672459699
🌐 Visit our website: www.allnew.co.za
🖥 Facebook: https://www.facebook.com/AllNewMediaSolutions
i need to start on the however i was looking for a quote for a bulk tank, the competent people to connect tank to pump to scales and the compliance guidelines
Hello Themba,
Thank you for your interest in starting a gas business. Here’s how you can proceed:
Bulk Tank Quote: To get a quote for a bulk tank, I recommend contacting suppliers or distributors directly. They can provide you with detailed pricing based on your specific needs.
Installation Services: For connecting the tank to pumps, scales, and ensuring compliance, it’s crucial to engage qualified professionals experienced in gas installations. They will ensure all safety and regulatory standards are met.
Compliance Guidelines: Familiarize yourself with local regulations and guidelines for handling and selling gas. The Department of Mineral Resources and Energy oversees licensing and compliance requirements.
For more detailed guidance and support, join our WhatsApp channel: Join our WhatsApp Channel here: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17 💬: We share exclusive tips and resources to help entrepreneurs like you succeed!
I’m interested in the Gaz business
Hello Victor,
That’s fantastic to hear! Starting a gas business can be a rewarding venture. Here are some initial steps to help you get started:
Licensing: Begin by completing the “Application for Site or Retail License” form (DMRE 39).
Location: Choose a strategic location accessible to your target market.
Supplier: Establish a relationship with a reliable gas supplier.
Join our WhatsApp Channel here: https://whatsapp.com/channel/0029VaAg5WdAYlULLkj3Qv17 💬. We share exclusive tips and resources to help entrepreneurs like you succeed!
I would love to venture into LPG Gas business in future and all I need right now is mentor to guid me while doing my research about the business and a Capital of course..
Thank you for the insightful article. It is definitely a big help.
Hi,im interested in starting the a gas refilling business at Mamelodi. How much it cost to buy a pumps,dispensers and tanks.
Hi may you kindly guide me i want to start a gas business but small for now using my place as a place of business, is this possible and what steps can i take?