Starting a gas refill business can be a highly profitable venture—especially in South Africa, where many households rely on LPG (liquefied petroleum gas) for cooking and heating. With consistent demand and relatively low start-up costs, it’s an attractive option for aspiring entrepreneurs.
Here’s a complete guide on how to start a gas refill business in South Africa.
1. Understand the Demand and Opportunity
In many urban and rural areas, LPG is a primary energy source due to unreliable electricity supply or cost-saving needs. This creates ongoing demand for gas refilling services, particularly in residential neighborhoods, townships, and near filling stations.
Choosing a high-traffic location—such as a petrol station, taxi rank, or roadside hub—can increase your customer base and profitability.
2. Obtain the Required License
Before you can operate legally, you must apply for the correct license.
- ✅ License Required: DMRE 38 Wholesale License
- 🏢 Issued By: Department of Mineral Resources and Energy (DMRE)
- 💸 Annual License Fee: R500
You’ll need to apply at your regional DMRE office. Once your license is granted, you are legally allowed to buy LPG in bulk and distribute or refill gas cylinders.
Each year, you’ll be required to submit your operational data using the DMRE 30 Annual Information Submission Form. Staying compliant is key to keeping your license active.
3. Start-Up Costs and Equipment
The cost to start a small-scale gas refill business can range from R10,000 to R50,000, depending on your setup. Here’s what typically impacts the budget:
🧰 Basic Equipment Needed:
- Refilling pump or scale
- Gas cylinders (various sizes)
- Secure storage cage
- Delivery vehicle (optional)
- Safety gear (fire extinguishers, gloves, signage)
💡 Tip:
If you’re starting small, consider partnering with existing gas distributors to reduce your initial investment. You can later scale up to full distribution with your own supply.
4. Safety First 🔥
Gas is a hazardous material, so strict safety measures are essential. Make sure to:
- Store all gas cylinders in a secure, ventilated cage
- Install fire extinguishers near the storage area
- Display warning signs clearly
- Train yourself and your staff in fire safety and emergency response
Failing to meet safety requirements can lead to fines—or worse, endanger lives.
5. Develop a Business Plan
A solid business plan will help guide your startup and attract potential investors. It should include:
- Market analysis (local demand)
- Startup and operational costs
- Pricing strategy
- Marketing plan
- Profit projections
Include your licensing process and how you’ll comply with regulatory requirements.
6. Promote Your Business
To attract customers:
- Offer affordable refill rates
- Run promotions for new customers
- Partner with local hardware stores or spaza shops
- Use signage, word of mouth, and local advertising
Providing delivery or after-hours services can also set your business apart.
Motivation to start
Starting a gas refill business in South Africa is not only legal and profitable, but also provides an essential service to communities. By choosing the right location, complying with licensing rules, and maintaining safety standards, you can build a business that is both sustainable and impactful.
🔥 Ready to light up your future? Start planning your gas refill business today!