Requirements, Cash Contribution, Funding Requirement, Training, Licence application, etc
Please take note of the following requirements to buy a petrol station, which is furnished to you without prejudice, for your information, guidance, benefit, and assistance if you are unfamiliar with the normal selection requirement or criteria as required by most Oil Companies.
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- Oil Companies prefer that potential purchasers making inquiries have at least 50 % of the TOTAL funding requirement needed to acquire a petrol station business in CASH on hand and MUST be able to obtain APPROVED FINANCE for the balance.
Requirements to Buy a Petrol Station Example
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- Selling Price of business R 5,000,000 net profit +- R 120,000 pm
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- Plus: Stock R 1,200,000
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- Plus Working Capital R 500,000
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- Other: e.g., Training, Licence application, etc. R 100,000
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- Oil company fuel guarantee of R 800,000
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- TOTAL Funding Requirement R 7,600,000
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- Less: required Own Cash Contribution R 3,800,000
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- Therefore, the loan amount is NOT to be more than R 3,800,000
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- 100% Funding will have a loan payback of +- R 145,000 per month for 5 years, note business net profit is only +- R 120,000 per month. You will receive NO monthly salary for 5 years and you will have to pay from your own money another R25,000 per month just to cover the loan.
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Important Information for Prospective Dealers
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Required Documents
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- To apply as a dealer, you must submit the following documents:
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- 1. Full set of CIPC company documents.
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- 2. Police clearance certificate for the main applicant and all CIPC listed directors (issued within the last 3 months).
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- 3. Company shares certificates.
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- 4. Certified ID copy (issued within the last 3 months).
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- 5. Proof of own funds contribution (issued within the last 3 months).
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- 6. Updated CV.
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- 7. Completed oil company application form.
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Application Process Guidelines
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- • Fill in ALL fields on the form; if information is not applicable, insert “N/A”.
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- • Incomplete applications will not be considered.
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- • Please title attachments appropriately.
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Screening Process
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- • Applications are screened based on the oil company’ criteria.
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- • Shortlisted candidates undergo a panel interview and business plan assessment one week after the application deadline.
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Dealer’s Requirements
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- • Dealers must reside within 30km of the site.
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- • If applying for a site outside the home address, relocation must be proven.
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- • Dealers must be full-time and hands-on with the business.
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Psychometric Assessment
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- • Assessment must be completed within 7 days of notification.
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- • Cost is approximately R9,800, subject to change.
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- • Final decision is based on assessment and interview feedback.
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For Appointed Candidates Only
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- • Mandatory +-6-week oil company Dealer training (cost: approximately R30,000).
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- • Training is held in Gauteng; transport and accommodation are at the applicant’s expense.
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Retail License
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- • Dealers must apply for a Retail license from the Department of Energy (DoE) before taking over the station. Approximately three to four months for the application process.
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- • Application cost is borne by the applicant.
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Funding
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- • Candidates must secure funding from recognized financial institutions within 3 months.
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- • Oil companies do not provide funding for station purchases.
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Disclaimer/Terms and Conditions
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- • Acceptance of the application form does not guarantee station ownership.
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- • Oil companies may withdraw the appointment at any stage.
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- • Decision on applications is final.
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- • Appointment is confirmed with a signed letter from the oil company.
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- • Oil companies promote transformation as per the Liquid Fuels Charter.
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- • Oil companies are not liable for personal losses during the application process.
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Frequently Asked Questions
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- • How do I become an oil company Dealer?
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- • Search for available sites, fill out the application form, and submit all required documents.
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Is there a qualifying criteria?
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- • Yes, including no existing dealers or oil company employees.
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What happens after applying?
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- • Due diligence, interview, psychometric assessment, and compliance check follow.
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Do the oil companies provide funding?
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- • No, applicants must source their own funding.
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What is the minimum amount needed to apply?
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- • Oil companies do not prescribe a minimum, but applicants must commit some of their own capital.
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Are there funding institutions willing to fund applicants?
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- • Yes, candidates must engage with these institutions directly.
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How long does the process take?
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- • Approximately two to two and a half months for the application process, and additional time for licensing and funding.
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What if I want to build my own site?
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- • New site developments are managed by oil companies’ Retail Investment Team, requiring specific documentation.
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- The oil company Retail Investment Team oversees new site developments, ensuring adherence to specific requirements:
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- 1. Deed of ownership for the land.
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- 2. Municipal zoning approval for the designated land.
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- 3. Completion of an Environmental assessment report.
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- 4. Submission of a Traffic count report.
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- 5. Site and retail licenses.
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- 6. Development of a comprehensive Business plan.
Kearabetswe (Kea) Mametse
on said
Good day
I am interested in owning a petrol station
I have acquired land in Mpumalang and would like to open a filling station
I need assistance in doing so
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-much-does-a-petrol-station-cost-in-south-africa/
Mr Zimba
on said
Good morning please assist I would like to buy a service station around Kzn I did communicate with my bank Ithala they advise me to find the petrol station and came back to them with fully imfomation. Please advise if I can be assisted. Thanks
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Nontobeko Ngidi
on said
Hello. I’m interested in buying an engine garage.
Which procedures should I follow.
How long does it take? I understand that I need to have at least 5.5 million
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Siyabonga Mbatha
on said
I’m Siyabonga Siphamandla Mbatha in KZN my dream is to own Petrol Station but the problem is I don’t have funds to run the business
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-much-does-a-petrol-station-cost-in-south-africa/
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Thalente Brian Cele
on said
good day I would like to know about opening a portable or mobile fuel station but don’t have funds and research doesn’t show how profit is made but keeps saying it is determined by many factors instead of show or explaining how profit is made
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Sam
on said
I need to own petrol station so can you please help me in how to get training and licence,I need two of them on N1 north off ramp and N1 south off ramp in modimolle, kranskop,
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Masilo
on said
We are based in Tzaneen Limpopo we are co-op running a taxi industry and would like to purchase the filling station or to build one in our area of Tzaneen town
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/listing-status/for-sale/
Thabo Seli
on said
Mr Ander since i send you an email 21 february 2023 you have not respond even today sir
Andre Ceustermans
on said
There is no email on my system from thabo103@gmail.com. Which email address did you send it too.
Zamekile Nondlevu
on said
I’m Zamekile Nondlevu leaving in Mthatha, EC interested to open Engen filling station at Libode along R61. I do have land but I don’t have money for starting the business what should I do to fulfill my dreams.
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/category/blog-news/
Nqobani
on said
Hi my name is Nqobani Nxele from kwazulu Natal , I always dreamed of owing my own garage since I was a boy.
But I don’t have funds at all, can I be assisted?.
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Lumkani Wanda
on said
I am interested to buy an existing petrol station in Gaauteng
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/listing-status/for-sale/
Lovemore
on said
Hi good day my name is Lovemore Chauke known by the name of Lucky.
I’m a young man with vision of owning a filling station.
Sadly I don’t have funds, so how do I get to own a filling station?
Regards Lovemore Chauke
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
Fashina Kamoru Bode
on said
I now identify a functional petrol station for outright sale here in Ogun State, Nigeria and the owner is asking for #175million Can your financial company provide me with this capital for outright aquisition of this petrol station and l will pay back with accruable interest rate the end of 5 years of business operation.
Andre Ceustermans
on said
Sorry we do not do funding
Fashina Kamoru Bode
on said
I now identify a functional petrol station for outright sale here in abeokuta metropolitan city of Ogun State Capital and the owner is asking for #175million l am keenly interested to access your funding of $600,000 to enable me take ultimate advantage of this cash generating project
Andre Ceustermans
on said
Sorry we do not do funding
THAPELO ISHMAEL JANKIE
on said
Hi my name is THAPELO JANKIE from MT FLETCHER , I always dreamed of owing my own garage since I was at school.
But I don’t have funds at all, can I be assisted?
Andre Ceustermans
on said
Sorry can’t assist as you need at least 50% own cash and fund 50% to buy a petrol station
Thabang Wanyalaza
on said
Good day team I have a dream of owning my petrol station but big issue is fund,I’ll like to get advice to that which path maybe I can use to finally own one?
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/how-to-buy-a-petrol-station/
mlungisi
on said
i want to have my own station one day
Andre Ceustermans
on said
https://www.petrolstationsforsale.co.za/what-are-the-requirements-to-buy-a-petrol-station-in-south-africa-by-cyrus-brokers/
Lerato
on said
Good Day
I just want to know on point number 11 on this page. So if my company will be purchasing the fuel station, can I appoint a manager who will be managing the business on behalf of my company?
Andre Ceustermans
on said
Good day Lerato, you are welcome to contact me regarding your question, Andre 072 560 8281