Petroleum (Licence Fees) Regulations, 2024 Normal Petroleum Licence Fees
New petroleum licence fees: US$30 000 to procure, US$9 200 to wholesale, US$5 000 to blend, US$20 000 for ethanol production, and US$500 urban or US$200 rural to retail — all excluding VAT and non-refundable once issued.
The Minister of Energy and Power Development, after consulting ZERA, has set the licence fees for the petroleum sector. They apply to companies licensed to procure, produce, wholesale and retail petroleum products under Part VI of the Petroleum Act.
The fees, all excluding VAT, are: petroleum procurement US$30 000; ethanol production US$20 000; petroleum wholesale US$9 200; LPG wholesale US$8 000; petroleum blending US$5 000; petroleum retail (urban) US$500; and petroleum retail (rural) US$200, which is the same as LPG retail at US$200.
The gap between urban and rural retail is deliberate and large — a rural service station pays 40 per cent of what an urban one pays. The heaviest burden by far falls on procurement licensees at US$30 000.
Two practical points. The fee is payable on application, once the operator has satisfied the Authority through the appropriate licence application. And it is non-refundable once the licence has been issued, so there is no route to a refund if you stop trading.
The regulations state no commencement date and no penalty. The schedule closes with a stray quotation mark after the LPG wholesale line, which suggests the schedule is a substitution for an earlier one, although this instrument does not say which one it replaces.
What changed
- Petroleum procurement licence fee set at US$30 000 excluding VAT
- Ethanol production licence set at US$20 000 and petroleum blending at US$5 000
- Petroleum wholesale set at US$9 200 and LPG wholesale at US$8 000
- Petroleum retail set at US$500 urban and US$200 rural; LPG retail at US$200
- Licence fees are payable on application and are non-refundable once the licence is issued
Who this affects
- fuel procurement companies and importers
- petroleum wholesalers and blenders
- urban and rural service station operators
- LPG retailers and wholesalers
- ethanol producers such as Green Fuel
- ZERA licensing staff
Plain-language summary — not legal advice. Always read the full instrument.