Conditions to become a general petroleum retail agent

Article overview

General petroleum retail agent is a strategic business location, providing great opportunities for market expansion and revenue growth. To become a general agent, businesses need to meet the conditions of financial capacity, facilities, and standard distribution system. The following article will analyze in detail the legal regulations, operating conditions and procedures for registering as a general petroleum retail agent according to current regulations.

Regulations on procedures for registering as a general petroleum retail agent
Regulations on procedures for registering as a general petroleum retail agent

Regulations on general petroleum retail agents

General petroleum retail agents are traders who act as petroleum trading agents, playing an important role in the distribution system. According to the provisions of Clause 13 and Clause 14, Article 3 of Decree 83/2014/ND-CP, general petroleum agents must not only self-consume gasoline at their own retail stores but also organize an agent system affiliated to sell gasoline to key traders.

To operate as a general agent, businesses need to meet the conditions of legal status, technical facilities and personnel. Specifically, the enterprise must be established in accordance with the law and have a petroleum business registration in the Business Registration Certificate. At the same time, general agents must have storage tanks, transportation vehicles and distribution systems that meet the minimum scale as prescribed.

Compliance with legal regulations is a key factor for an enterprise to be granted a Certificate of eligibility to act as a general agent for petroleum trading. This certificate is valid for 5 years and is an important legal basis for the general agent to operate a business.

Conditions for operating as a general petroleum retail agent

Financial conditions

Pursuant to Article 16 of Decree 83/2014/ND-CP amending Decree 95/2021/ND-CP, to become a general petroleum retail agent, businesses need to meet the following financial conditions:

  • Have enough capital to invest in facilities, carry out registration procedures and maintain business operations.
  • Enterprises need to have the financial ability to own or rent long-term petroleum storage tanks with a minimum capacity of 2,000 m3.
  • Have resources to invest or rent a vehicle to transport petroleum for at least 5 years.
  • Have the financial capacity to build and maintain a petroleum retail distribution system that meets the minimum scale as prescribed.

Business infrastructure conditions

According to the provisions of Article 16 of Decree 83/2014/ND-CP amended and supplemented by Decree 95/2021/ND-CP, general petroleum retail agents must meet strict infrastructure conditions business floor. Specifically:

  • The enterprise is legally established and registered to do oil business.
  • Have an oil storage facility with a minimum capacity of 2,000 m³, owned or leased for 5 years or more.
  • Have a vehicle to transport gasoline, owned or leased for 5 years.
  • Have a distribution system: at least 5 retail stores (of which at least 3 are owned) and at least 10 qualified retail agent stores.
  • Managers and sales staff must be trained in fire prevention, fighting and environmental protection according to regulations.
Conditions for registering as a general petroleum retail agent
Conditions for registering as a general petroleum retail agent

Conditions on fire prevention and fighting and environmental protection

General petroleum retail agents must strictly comply with regulations on fire prevention and fighting and environmental protection. Pursuant to Decree No. 83/2014/ND-CP on fire protection, general agents need to meet the following requirements:

  • Managers and direct sales staff must be trained, trained and have certificates in fire prevention and fighting operations.
  • This training must follow the instructions in Circular 43/2014/TT-BTNMT on environmental protection in the petroleum business.
  • Petroleum business establishments must be fully equipped with fire protection equipment and means according to regulations.
  • The fire protection system must be inspected and maintained periodically and always be ready for operation.
  • The general agent must develop and implement a fire prevention plan approved by the competent authority. This plan needs to be updated and adjusted to suit actual conditions.
  • Regarding environmental protection, the general agent needs to carry out an environmental impact assessment or environmental protection plan according to regulations.
  • Wastewater and exhaust treatment systems must meet environmental standards.

Procedures for registering as a general petroleum retail agent

To be granted a Certificate of eligibility to act as a general agent for petroleum trading, businesses need to carry out the following procedures:

Step 1: Prepare complete documents as prescribed in Article 17 of Decree 83/2014/ND-CP amended and supplemented by Decree 95/2021/ND-CP. Include:

  • Application for issuance of Certificate of Acknowledgment Model number 7.
  • Copy of business registration certificate.
  • Copies of documents proving professional training of managers and direct sales staff.
  • List of technical facilities serving the petroleum business.
  • List of traders’ petroleum distribution systems.
  • Original written confirmation of the trader supplying gasoline to the general agent with a minimum term of one (01) year.

Step 2: Submit application

  • For general agents with distribution systems in 2 provinces and cities or more, documents must be submitted to the Ministry of Industry and Trade.
  • In case of operating only within 1 province or city, documents must be submitted to the local Department of Industry and Trade.

Step 3: The competent authority receives and evaluates the dossier

  • Within 7 working days of receiving the dossier, if it is not valid enough, the agency with verification rights will request additional trade.
  • Within 30 working days of receiving complete and valid documents, the agency must review, verify and issue a certificate of eligibility to act as an oil safety general agent.
  • If refused, the facility must respond in writing and clearly state the reason.
  • The certificate of eligibility is valid for 5 years.

After being granted the Certificate, businesses need to pay fees and charges according to the regulations of the Ministry of Finance. Complying with the correct procedures and preparing complete documents will help the registration process go smoothly.

Application for registration as a general petroleum retail agent
Application for registration as a general petroleum retail agent

Consulting on operations and business activities of general petroleum retail agents

At Long Phan, with a team of consultants with many years of experience. We provide operational and business consulting services of general petroleum retail agents as follows:

  • Consulting on legal regulations on registration and operation of general petroleum agents;
  • Consulting and providing information on documents and procedures for registering as a petroleum general agent;
  • Support in preparing and drafting registration documents;
  • Representing customers to submit documents and work with competent authorities;
  • Consulting on regulations related to environmental protection, including waste treatment and pollution prevention;
  • Consulting on regulations on facilities and equipment that meet safety, fire prevention and environmental protection standards.

Consulting services on conditions to become a petroleum general agent help businesses understand the legal and regulatory requirements necessary to operate effectively. Using consulting services will help minimize legal risks, optimize business processes and enhance reputation in the market. For detailed advice on the registration process and operation of a general petroleum retail agency, please contact Long Phan via hotline 0906735386.