Process to register a filling station in Cameroon
A gas station also known as a filling station or petrol station is a facility that sells fuel and engine lubricants for motor vehicles in Cameroon. The most common fuels sold are gasoline (or petrol) and diesel fuel. The procedure to open a gas station in Cameroon is quite regulated by the government of Cameroon because the sector is a sensitive sector.
The Regulatory Landscape on the Registration of a Filling Station in Cameroon
The steps to open a gas station in Cameroon is regulated by Decree No. 2000/935/PM of 13 November 2000 establishing the conditions for carrying out activities in the downstream oil sector and its subsequent amendments, in particular Decree No. 2008/0026/PM of 22 January 2008 amending and supplementing the provisions of Articles 3, 17 and 29 of Decree 2000/935/PM mentioned above, which defines the procedure to follow for opening a service station in Cameroon.
According to a filling station or gas station is defined as any Installation equipped to ensure the reception, storage and retail sale of automobile fuels and possibly other petroleum products, its maximum capacity being set at 50 m3 in provincial capitals and 30 m3 in other localities.
Period of Validity of the approval to run a Gas Station in Cameroon
Except for special provisions contained in specific agreements, the approval is valid for a period of 15 years, renewable for other activities in the downstream oil sector.
Which authority is responsible for the grant of the approval to open a Gas Station in Cameroon?
Approval is granted by order of the minister responsible for petroleum products, after consultation with the National Petroleum Products Commission provided for in Article 37 of the decree.
Regime of Ownership of the Approval to open a Gas Station in Cameroon
Any person desirous to engage the steps to open a gas station in Cameroon must know that the approval is strictly individual and cannot be assigned, transferred or rented. It may be suspended or withdrawn for any failure to comply with the conditions set out, in accordance with the established procedures.
CONDITIONS TO REGISTER A FILLING STATION IN CAMEROON Any person desirous the engage the steps to open a gas station in Cameroon must meet the condition for exercising any one of the activities in the downstream oil sector of Cameroon.
These conditions are as follows:
- Be a natural or legal person under Cameroonian law;
- Have its head office in Cameroon;
- Produce proof of non-bankruptcy;’
– Constitute, depending on its level of activity, a guarantee to cover commitments to the State, the amount of which is set by joint decree of the Ministers responsible respectively for petroleum products, trade and finance;
– Demonstrate an academic profile of at least BAC+3 and a minimum of five (05) years of professional experience at a management level in the downstream oil sector, as a director or technical manager;
– Present an investment program that should contribute to the achievement of the objectives of the national energy policy during the period of validity of the approval,
Any change of technical manager must be notified to the Minister responsible for petroleum products within thirty (30) days.
TYPES OF APPROVAL IN THE PETROLEUM PRODUCTS DISTRIBUTION SECTOR IN CAMEROON
Any person desirous to engage the process to register a filling station in Cameroon must know that there are four (4) types of approvals in the Petroleum products distribution sector. They are as follows:
– The exclusive distribution of domestic gas (LPG);
– The sale of maritime bunkers;
– The sale of aircraft holds and;
– The distribution of all petroleum products outside the sale of bunkers.
WHAT IS THE RESPONSIBILITY OF AN APPLICANT DESIROUS TO OPEN A GAS STATION IN CAMEROON?
Any applicant for approval to carry out petroleum product distribution activities must present a five (5) year creation program of at least:
– Five (5) liquefied petroleum gas distribution centres with a minimum capacity of five hundred (500) 12.5 kg gas cylinders each for operators requesting approval to carry out liquefied petroleum gas distribution activities. In this specific case; the realization of at least 20% of these investments outside the departmental capitals concerns one of the three northern provinces of the country;
– Five (5) service stations for operators requesting approval to carry out distribution activities for all petroleum products;
– Maritime and airport facilities with a storage capacity of five hundred (500) cubic meters for applicants for approval to carry out activities involving the sale of maritime or aircraft bunkers.
Access to petroleum products from any approved distributor for all petroleum products (D1 approval) is subject to the creation of its first service station and the subscription of a civil liability insurance policy up to the risk corresponding to the activities to be carried out.
STEPS TO OPEN A GAS STATION IN CAMEROON
The process to register a filling station in Cameroon is exhibited through the following steps:
Step 1: Choose a Business Structure
This could be done through the formation of a limited liability company or a partnership in conformity with the relevant laws of OHADA. However, the promoters or founders will have more protection under the umbrella of a limited liability company as opposed to a partnership.
Step 2: Choose a Location
The location of the filling station in Cameroon is fundamental.
• In any case, the filling centre or LPG cylinder storage depot must be located at least three (03) metres from residential buildings and at least fifty (50) metres from establishments open to the public;
• Storage depots with a capacity greater than or equal to 15,000 kg of gas, i.e., 1,200 12.5 kg bottles, must be located at least eight (08) metres from residential buildings.
Step 3: Setup an Organizational Structure
Demonstrate an academic profile of at least BAC+3 and a minimum of five (05) years of professional experience at a management level in the downstream oil sector, as a director or technical manager
Step 4: Acquire or Lease a Land for the Project
The land to be used for the project to open a gas station in Cameroon must respect the requirements of distance from residential buildings and public establishments.
Step 5: Compile the necessary documents
The documents to be submitted if the legal entity is a business structure like a limited liability company is as follows;
- Incorporation Documents of the Company
- Personal documents of the company founders alongside their non-crime certificate
- If the founder(s) assume administrative responsibility, they must present the qualifying documents/certificate/authorization to prove their experience.
- The location plan of the Gas station
- The architectural plan
- The list of qualified staff
- Health and Safety Policy
- The finance documents etc.
Step 6: Apply for the Authorization to Operate
– The application file for approval to exercise one of the activities of this decree is made up of the following documents:
– A request stamped at the current rate specifying the name, business name or company name and taxpayer number of the applicant;
– The certificate of registration in the trade and real estate credit register or the act of legalization of the organization.
– A tax certificate and a tax status statement;
– A certified copy of the organization’s statutes;
– A commitment to adhere to the collective agreement for their sector of activity;
– A technical file corresponding to the type of activity targeted;
– The proof and certification required according to the type of activity targeted;
– A receipt for payment to the hydrocarbon price stabilization fund of the file study fees in the amount of:
1) Ten million (10,000,000) FCFA for refining;
2) Five million (5,000,000) FCFA for the activities of distribution of all petroleum products, storage, import, export, maritime bunkering and aviation bunkering;
(3) Two million (2,000,000) FCFA for the activities of exclusive distribution of domestic gas, quantity control and control of the origin of petroleum products.
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