A petroleum retail licence, sometimes called a retail fuel licence, is the licence issued by the Department of Mineral Resources and Energy (DMRE) that allows a business to sell petrol, diesel and other regulated fuels to the public. It is issued under the Petroleum Products Act 120 of 1977, together with a separate site licence for the physical premises. You need both: the site licence licenses the land, the retail licence licenses the sale of fuel from it, and neither works without the other.
This page focuses on the DMRE site and retail licence application itself: what the two licences cover, who qualifies, how the DMRE weighs market need before granting a new outlet, the application steps, fees, timelines, and how transfers and amendments work once you hold a licence. If you are planning a full petrol station development from bare land, including zoning, environmental approval and the branded-versus-independent decision, see our petrol station licence guide as well. If your business buys and sells fuel in bulk rather than retailing it to motorists, you need a petroleum wholesale licence instead.
If you would rather not manage the DMRE process yourself, Insika prepares and lodges site and retail licence applications, assesses feasibility before you commit capital, and manages transfers and amendments for existing operators.
Petroleum site licence vs retail licence: what is the difference
The Petroleum Products Act treats the site and the sale of fuel from it as two separate licensed activities, even though most applicants apply for both together.
- Site licence. Issued to the person or entity that owns the land, or holds a recognised right to occupy it (a lease, or on tribal land, a permission to occupy). A site licence authorises a specific, identifiable piece of ground to be developed and used as a facility for retailing petroleum products. It is tied to the property, not to whoever happens to be trading on it.
- Retail licence. Issued to the person or entity that will actually sell fuel to the public from a licensed site. A retail licence cannot exist without a corresponding site licence - the site must already be licensed, or the two applications must be granted together. The retail licence holder may buy fuel only from a licensed manufacturer or wholesaler, never from an unlicensed source.
Most new applicants lodge the site and retail licence applications together on the Application for Site or Retail Licence (DMRE 39). The applicant is usually a company registered with the Companies and Intellectual Property Commission (CIPC); if you have not registered one yet, see our company registration service.
You need a petroleum retail licence if you intend to sell fuel to motorists or the public from a petrol station, forecourt or similar outlet, whether you are building a new site, buying an existing one, or taking over the retail operation at a site someone else owns. You do not need this licence if you only trade fuel in bulk to other businesses or manufacture and refine fuel - those sit under separate wholesale and manufacturing licences.
Requirements to qualify for a petroleum retail licence
Before you complete the Application for Site or Retail Licence (DMRE 39), the Department expects an application that shows the following:
- A suitable applicant. If you are a company, a CIPC registration certificate; if you are a natural person, a certified copy of your identity document, and if you are not a South African citizen, your permanent residence or work permit plus proof of residence or domicile in South Africa.
- Proof of land ownership or a recognised right to occupy, for the site licence: a title deed if you own the land, the written permission of the landowner if you do not, or on tribal land, a permission to occupy.
- A declaration of compliance, confirming you meet the requirements of the Petroleum Products Act, its Regulations, and all other applicable national, provincial and local laws for operating on the site.
- A technical site plan showing the layout of tanks, pumps, forecourt, access and safety distances, generally prepared alongside the municipal building plan approval process for the construction itself. See our building plan approval service if your construction plans still need council sign-off.
- Confirmation you can trade lawfully once licensed, which for a retailer means agreeing to buy fuel only from a licensed manufacturer or wholesaler.
Requirements are broadly the same whether you are applying for a site licence, a retail licence, or both together, though the specific supporting documents differ. Confirm the current checklist with your DMRE regional office before you lodge.
How to apply for a petroleum retail licence step by step
The DMRE site and retail licence application follows a fixed sequence set out in the Regulations. This is how it runs from a decision to apply through to a trading licence.
- Confirm which licences you need
Decide whether you need a site licence, a retail licence, or both. Most new operators need both, lodged together. If you plan to trade fuel in bulk as well, confirm separately whether a wholesale licence applies to your business model.
- Prepare the application and supporting documents
Gather your CIPC registration or identity documents, proof of land ownership or lease, the technical site plan, your tax clearance and the declaration of compliance. Incomplete documents are the most common cause of delay.
- Lodge DMRE Form 39 with your regional office
Complete the Application for Site or Retail Licence (DMRE 39) and lodge it, with the application fee, at the DMRE regional office covering the area where the site is located.
- Publish the notice of application
Once the Department accepts the application, it sends a letter instructing you to publish a notice of the application in four newspapers. You must then send the Department proof of publication.
- Objection period
Interested or affected parties, including existing retailers in the area, may lodge objections during this period, commonly arguing that a new site is not needed or would harm the viability of existing outlets.
- Departmental decision
The Controller of Petroleum Products must decide within 90 days of receiving proof of publication. The application may be granted, refused, or granted subject to conditions.
- Start trading and file annual returns
Once granted, and once any municipal or construction sign-off is in place, you may start trading. You must then submit the Retail Licence Annual Information (DMRE 33) every year to keep the licence in good standing.
Market need, feasibility and objections: how the DMRE decides
Granting a new site or retail licence is not only a paperwork exercise. South African courts have confirmed that the Controller of Petroleum Products must weigh the efficient functioning and economic viability of the retail fuel industry, not just whether the applicant's own documents are in order, before deciding an application.
In practice this means existing retailers in the area can, and regularly do, object during the newspaper publication period, commonly arguing that another outlet nearby would take volume from existing sites and make one or more of them unviable. The Department must weigh these objections alongside the application before it decides.
If the Department grants a licence over an objection, the objecting party can appeal the decision to the Minister under section 12A of the Petroleum Products Act. A 2024 Supreme Court of Appeal ruling (Gensinger and Neave CC and Others v Minister of Mineral Resources and Energy) confirmed that a section 12A appeal suspends the Controller's decision until the appeal is finalised, so a granted licence is not necessarily final or immediately usable while it remains under appeal.
For an applicant, the practical lesson is to go in with a realistic view of the local market before spending money on land, a lease or construction. An honest look at fuel volumes, existing sites nearby, and traffic patterns is worth doing before you lodge, not after an objection has already stalled your application.
How much does a petroleum retail licence cost
The Department's own fees for a site and retail licence application are modest. The bigger cost is usually the professional work of preparing a complete, defensible application and, where useful, a feasibility assessment to reduce the risk of a costly objection or refusal. The figures below separate the official DMRE fees from Insika's indicative professional fees, which are confirmed on a quote once we understand your site and licence combination.
| Item | Indicative cost |
|---|---|
| Site licence application fee (DMRE) | R1 000 |
| Retail licence application fee (DMRE) | R500 |
| Annual retail licence information submission (DMRE 33) | R500 a year, verify with DMRE |
| Newspaper notice of application (4 publications) | Varies by publication - budget several thousand Rand |
| Insika professional fee - retail licence application (indicative) | R12 500 - R30 000+, confirmed on a quote |
| Insika professional fee - site licence application (indicative) | R15 000 - R35 000+, confirmed on a quote |
How long does a petroleum retail licence take
By law, the Department must decide a complete application within 90 days of receiving proof of publication of your notice of application. That clock starts once publication is done, not from the date you first lodge.
- Faster: a complete, correctly compiled application, a site with no competing claims, and no objections during the publication period.
- Slower: missing or incorrect documents, a site with disputed land rights, objections from existing retailers that require further submissions, or an appeal to the Minister under section 12A, which suspends the decision until it is resolved.
Add the time to prepare a complete application and run the newspaper publication, and, if you are also building or buying construction, tanks and a canopy, the municipal zoning, environmental approval and construction timeline covered in our petrol station licence guide. Plan the licence itself in months, and the whole project, if starting from bare land, in the better part of a year or more.
Transferring, amending and renewing a petroleum retail licence
A petroleum retail licence is not a one-time formality you can forget about once granted. Selling the site, changing the operating entity, or simply updating your registered details all have to go through the Department, not just a private agreement between buyer and seller.
Transfers. A site licence is tied to the land, so in practice it is generally treated as transferable to a new owner of the licensed property. A retail licence attaches to the entity that trades at the site, so a change of retailer typically needs the new operator to lodge a fresh retail licence application rather than simply inheriting the seller's licence. Confirm the current transfer procedure for your specific site with your DMRE regional office before you finalise a sale or lease.
Amendments. If your licensed details change without a change of licence holder, for example a company name change, a registered address change, or a correction to the licensed particulars, you apply to the Department for an amended licence rather than a fresh application. The Department may issue an amended licence provided the amendment does not affect any existing rights, debts, liabilities or obligations under the original licence, and does not invalidate any legal proceedings already under way.
Annual information. A retail licence does not expire on a fixed date the way some other licences do, but you must submit the Retail Licence Annual Information (DMRE 33) every year to keep the Department's records current and your licence in good standing. Missing this submission is an easy, avoidable way to fall out of compliance.
Documents you will need
The exact list depends on whether you are applying for a site licence, a retail licence, or both, and on the DMRE regional office handling your matter, but most applications call for the documents below.
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.
- Petroleum site and retail licence - South African Government
- Petroleum wholesale licence - South African Government
- Department of Mineral Resources and Energy - guidelines to the site and retail licence regulations
- Gensinger and Neave CC and Others v Minister of Mineral Resources and Energy - Supreme Court of Appeal (2024)
