LPG (liquefied petroleum gas) is legally a petroleum product, so it is caught by two separate sets of South African law, not one. The Department of Mineral Resources and Energy (DMRE) licenses the buying and selling of LPG under the Petroleum Products Act 120 of 1977, the same Act that licenses petrol and diesel. Bulk distribution and wholesale trading of LPG need a DMRE distribution or wholesale licence. This is the licensing side of an "LPG licence".
Separately, and regardless of whether you hold a DMRE licence, every LPG installation, whether it is a cylinder store at a restaurant, a bulk tank at a factory, or a filling premises for refillable cylinders, is governed by the Occupational Health and Safety Act 85 of 1993 and the Pressure Equipment Regulations, with SANS 10087 as the code of practice. Only an installer registered with SAQCC Gas may lawfully carry out or certify an LPG installation, and every installation needs a Certificate of Conformity (CoC) before it is used. This is the safety compliance side, and it applies whether you distribute gas in bulk, run a gas cylinder shop, or simply use LPG in your own business.
This page covers the LPG distribution licence, the SANS 10087 and CoC requirements, storage facility compliance, cylinder distribution rules, cost, timeline and documents. If you would rather not work through both tracks yourself, Insika can manage your LPG distribution licensing, storage compliance, cylinder distribution approvals and facility compliance reviews on your behalf.
LPG licence and compliance: what you actually need
Whether you need a DMRE licence, safety compliance, or both, depends on what your business actually does with LPG. There is no single "LPG licence" that covers everything, so start by placing your business on this scale:
- Bulk distributor or wholesaler. You buy LPG in bulk (generally 1 500 litres or more per transaction) from a refinery, importer or licensed manufacturer and sell it on to retailers, cylinder fillers or other bulk buyers. You need a DMRE distribution/wholesale licence, plus full SANS 10087 compliance for every storage and filling site you operate.
- Cylinder reseller or gas shop. You buy pre-filled cylinders from a licensed distributor and sell them on, without filling or refilling anything yourself. You generally do not need your own DMRE licence, but your storage, handling and cylinder-marking practices must still meet SANS 10087 and industry safety rules, and your premises can be inspected.
- Business that installs or uses LPG. A restaurant, factory, caravan park or household installing a gas hob, heater, bulk tank or cylinder bank does not need a DMRE licence at all, but the installation itself must be done by a SAQCC Gas registered installer and certified with a Certificate of Conformity.
Most enquiries Insika receives are from businesses at the first two points on that scale, wanting to start selling or distributing LPG properly. The rest of this page works through both tracks, starting with the DMRE distribution licence.
LPG distribution licence requirements
Because LPG is a petroleum product, bulk distribution and wholesale trading are licensed the same way as bulk petrol or diesel trading, through the DMRE, using the wholesale licence application (form DMRE 38). Before you apply, the Department generally expects you to show:
- A registered legal entity. Applicants apply through a company registered with the Companies and Intellectual Property Commission (CIPC). See our company registration service if you have not registered yet.
- Proof of a compliant storage facility. The DMRE will not accept a wholesale licence application without proof of a storage facility for the LPG you intend to trade. The facility itself must meet SANS 10087 siting, ventilation and separation requirements before it can be used to support the application.
- Bulk trading volumes. The wholesale licence threshold generally applies to transactions of 1 500 litres or more. If your business model is closer to bulk distribution and dealer supply, see also our petroleum wholesale licence service, since the DMRE licence category and application form are shared across petroleum products including LPG.
- Tax clearance and supporting compliance documents. The Department may request a current SARS tax clearance and other standard compliance documents as part of the application.
- Notice of application. Once the Department accepts your submission, you must publish a notice of the application in four newspapers so that interested or affected parties, including the local community and other licence holders, can object within a set period.
A common route into the industry that avoids holding your own wholesale licence is to become a dealer or reseller for an established, already-licensed distributor, buying pre-filled cylinders and selling them on rather than handling bulk gas yourself, provided your storage and handling still meet SANS 10087.
How to apply for an LPG distribution licence step by step
The application route for an LPG wholesale or distribution licence follows the same structure as other Petroleum Products Act licences, run through your regional DMRE office.
- Register your entity and confirm your business model
Register your company with CIPC, and decide whether your business will hold its own DMRE distribution licence (bulk trading) or operate as a reseller of a licensed distributor's cylinders (no DMRE licence needed, but full safety compliance still applies).
- Prepare a SANS 10087 compliant storage facility
Site and build your storage or filling facility to SANS 10087 requirements before you apply, since proof of a compliant storage facility is a precondition for the DMRE wholesale licence application, not something you can add afterwards.
- Complete and lodge the DMRE 38 application
Complete the Application for Wholesale Licence (DMRE 38) and lodge it with your regional Department of Mineral Resources and Energy office, together with your company registration documents, proof of the storage facility and tax clearance.
- Publish the notice of application
Once the Department accepts your submission, publish the notice of application in four newspapers as directed, then send the Department proof of publication. This opens the objection period.
- Department review and decision
The Department aims to respond within 90 days of receiving proof of publication. In practice, a complete application with no objections is decided within about three to four months.
- Certify every installation before you operate
Before you start filling cylinders or trading from the site, every storage tank, filling point and installation must be inspected and issued a Certificate of Conformity by a person registered with SAQCC Gas. You cannot lawfully operate on the DMRE licence alone.
- Submit annual information and renew
Once licensed, you must submit annual information to the DMRE (form DMRE 30) and pay the annual licence fee to keep the licence current.
LPG installation compliance: SANS 10087, SAQCC Gas and the Certificate of Conformity
Separately from DMRE licensing, every LPG installation in South Africa, whether a domestic gas hob, a restaurant kitchen, an industrial bulk tank, or a commercial filling premises, is regulated as safety equipment under the Occupational Health and Safety Act and the Pressure Equipment Regulations, which incorporate SANS 347 for categorising pressure equipment. The code of practice that installers, inspectors and businesses work to is SANS 10087, published in parts covering domestic, commercial and industrial installations, LPG in mobile units, storage and filling premises for refillable containers, and related equipment such as hoses, regulators and shut-off valves.
Only a person registered with SAQCC Gas (the South African Qualification and Certification Committee for gas practitioners) may lawfully install, alter or certify an LPG installation. SAQCC Gas registers practitioners in categories including domestic, commercial, industrial, rail or road tanker, and auto-gas conversion, each requiring a recognised training qualification and supervised installation experience. The industry safety association, LPGSASA, works with SAQCC Gas on these categories and on broader LPG safety standards.
Once an installation is complete, the registered installer issues a Certificate of Conformity (CoC), confirming it has been inspected, tested and found safe and leak-free. A CoC is required for every new installation, and typically also when an installation is altered, when a property with a gas installation is sold, and for insurance purposes. Confirm current validity periods with SAQCC Gas or your insurer, since renewal practice can vary.
LPG storage facility compliance and cylinder distribution rules
SANS 10087 sets out detailed siting and handling rules for LPG storage, and most municipalities layer their own bylaws and fire department permit requirements on top. Core requirements that apply to any business storing LPG cylinders or bulk gas include:
- Ignition and ventilation. Cylinders and tanks must be kept away from ignition sources, open flames, electrical points and drains, in a well ventilated area. LPG is heavier than air, so it must never be stored in a cellar or enclosed low point where escaping gas could collect.
- Separation distances. Minimum distances apply between storage and boundaries, buildings, windows and doors, and full and empty cylinders generally need to be kept a minimum distance apart, commonly around 3 metres.
- Larger cylinders stored outdoors. Bigger cylinders, such as 48 kg units, are typically required to be stored outdoors in a secure, ventilated cage, with "No Smoking" and "Flammable Gas" signage clearly displayed.
- Fire department approval. Local fire departments commonly require their own permit or inspection of an LPG storage or filling site, in addition to SANS 10087 compliance.
- Large bulk storage and pipeline infrastructure. Constructing and operating substantial bulk LPG storage or pipeline infrastructure, rather than a cylinder depot, may also need a licence from the National Energy Regulator of South Africa (NERSA) under the Petroleum Pipelines Act, and can trigger our environmental authorisation service if the site is sensitive. Confirm with NERSA before committing capital.
Cylinder distribution carries its own marking and ownership rules. Commercial Cylinders (CC) remain the property of the importer or brand owner, and written permission is required before another party may fill them. Private Cylinders (PC) are owned by the end user, and a compliant facility does not need separate permission to refill them. Filling any cylinder at a facility that is not a registered, compliant installation is unlawful and unsafe, regardless of whose cylinder it is.
How much does an LPG licence and compliance cost
There are two cost lines to budget for, and they are easy to confuse: the DMRE distribution licence fees, and the ongoing cost of SANS 10087 compliance and Certificates of Conformity. The figures below are indicative for budgeting purposes. They are not Insika prices and not a guaranteed total for your matter.
| Item | Indicative cost |
|---|---|
| DMRE wholesale/distribution licence application fee | R1 000 once-off |
| DMRE annual licence fee | R500 a year, once licensed |
| Newspaper notice of application (4 publications) | Varies by publication - budget several thousand Rand |
| Storage facility upgrade to SANS 10087 (cages, signage, separation) | Varies considerably by site and existing infrastructure |
| Certificate of Conformity, per installation | R550 - R2 500+ depending on installation size and provider |
| Fire department permit and inspection | Varies by municipality (verify with your local fire department) |
| NERSA storage/pipeline licence, bulk infrastructure only | Case-by-case (verify with NERSA) |
| Insika professional fee (indicative) | R15 000 - R50 000 |
How long does an LPG licence take
A complete DMRE wholesale or distribution licence application, with proof of a compliant storage facility and no objections, commonly takes around three to four months from lodging to decision, matching the Department's 90-day response window measured from proof of publication of the notice of application.
Building or upgrading a storage facility to SANS 10087 standard, and getting it inspected and issued with a Certificate of Conformity, runs on a separate timeline that depends on the scope of the physical work. Since the DMRE will not accept your licence application without proof of a compliant facility, sequence the physical compliance work first, or run it in parallel with your company registration and document gathering, so it is not the item holding up your licence.
Documents you will need
The exact list depends on whether you are applying for a DMRE distribution licence, arranging Certificates of Conformity for installations, or both. Most applications and compliance reviews call for the documents below.
Operating without a licence or valid compliance
Trading in LPG without the required DMRE licence, or operating an installation without a valid Certificate of Conformity, is more than an administrative risk. LPG is a flammable, pressurised product, so an uncertified installation or non-compliant storage site is a genuine safety risk to staff, customers and neighbouring property, on top of being unlawful. Consequences can include the DMRE refusing or revoking a licence, an insurer declining a claim after an incident, and personal liability for the owner if a fire or explosion is traced to unsafe storage or an unregistered installer. Building compliance in from the start is far cheaper than retrofitting it after an inspection or an incident.
Official sources
This guide is based on the current rules published by the relevant South African authorities. Always confirm the latest fees and requirements with the office that applies to you.
