On 13 June 2025, Lesotho published the Fuel and Services Control Regulations, 2025, a comprehensive regime governing the petroleum value chain, from refining and recycling to bulk storage, transport, retail and “large consumer” use. The Regulations take effect three months after publication, and will apply to new licences issued thereafter and when existing licences are renewed.
Who is affected?
- Oil refiners and recyclers
- Oil companies (bulk storage and wholesale supply)
- Local oil transporters (tankers and logistics)
- Retailers (service stations and paraffin sellers)
- Mobile filling stations (to serve underserved areas)
- Large consumers (entities using >20,000 litres/month)
- Holders of special petroleum product permits (e.g., illuminating paraffin in bulk)
Big-picture changes at a glance
- Licensing is mandatory across the chain, with detailed application packs (company identity, Environmental Management Plan (EMP), Environmental & Social Impact Assessment (ESIA) clearances where applicable, supply agreements, technical and financial capacity).
- A Verification Committee (drawn from Energy, Petroleum Fund and Trade) reviews and recommends licence applications/renewals and must give reasons for rejections.
- Enforcement is significantly strengthened: routine inspections, periodic environmental audits (5-yearly in many cases; annually for certain mobile facilities), and robust offences and fines, plus suspension/cancellation for breaches.
Licences & core requirements
1) Oil refining & recycling
- Refinery licence applicants must show: at least two storage facilities (raw and end-product), a treatment area/terminal, compliant equipment, EMP/ESIA, supply arrangements and financial capacity.
- Obligations: train staff, pay levies/taxes, monthly output/sales reporting, and maintain comprehensive insurance (including environmental risk).
2) Oil company (bulk storage & wholesale)
- Must own storage with ≥1,000,000 litres combined capacity; have compliant equipment and a functional office in Lesotho; source only from accredited suppliers; and file EMP/ESIA.
- Ongoing duties include:
- Import only through designated commercial border posts;
- Maintain a minimum 20% commercial stock of available storage;
- Submit environmental audits every 5 years;
- Deliver only to licensed retail outlets or licensees;
- Keep tanker lists/records; train staff; provide technical support to retailers.
3) Local oil transporter
- Application requires safety and spillage plans, tanker capacity/roadworthiness certificates, and compliance with labour and transport laws.
- Only eligible citizens may hold this licence (local participation rule).
- Obligations include loading only from licensed oil companies, off-loading only at licensed retail outlets, carrying proper documentation and insurance.
4) Retailers (service stations)
- Must source from the contracted company, display gazetted prices on site, service/calibrate dispensing equipment, and provide 5-yearly environmental audits on existing tanks.
5) Mobile filling stations
- A portable, containerised station authorised to serve underserved areas. Requires EMP approvals, lease/sub-lease papers, supply agreements and safety systems.
- Annual environmental audits on existing tanks are required.
6) Special petroleum products permit (e.g., illuminating paraffin)
- Application requires land rights, EMP approvals, company identity and reasons/volumes.
- Holders must declare storage, and report input/sales quarterly and on renewal.
- Illuminating paraffin sellers must keep a compliant bulk tank (where applicable), display and sell at gazetted prices, non-compliance attracts fines and possible licence cancellation.
7) Large consumer licence (>20,000 L/month)
- Applicants must prove consumption levels for a prescribed period, hold EMP/ESIA clearances, have supply agreements and compliant storage, and maintain proper records.
Applications, provisional permits & renewals
- A Provisional Non-Trading Permit can be issued for site construction (no trading) and is generally valid for one year, renewable based on site-inspection progress.
- Renewals require: tax/levy clearances, expired licence copy, environmental audit certificate, proof of continuous operation, and output totals. Apply two months before expiry.
Offences, penalties & sanctions
Breaches can lead to spot fines, fixed monetary penalties (commonly in the M2,000–M50,000+ range depending on the offence), suspension or revocation. Serious breaches (e.g., operating multiple petroleum businesses under one licence, or closing operations without approval) may incur fines up to M500,000. Typical offences include:
- Failure to maintain 20% minimum stock (oil companies);
- Importing through non-designated border posts;
- Not displaying product types or gazetted prices;
- Using non-accredited suppliers;
- Missing environmental audits;
- Operating beyond licence scope or providing misleading information.
Inspections & compliance oversight
The Regulator may appoint inspectors to examine businesses with or without prior notice, assess imports at ports of entry, and issue written directions to cure non-compliance. Obstructing inspections is itself an offence. A Verification Committee meets at least quarterly to review applications and renewals.
How Mayet & Associates can help
- End-to-end licensing: selecting the correct licence(s), compiling forms/schedules, EMP/ESIA coordination, supply-agreement support, and filing with the Ministry/Department.
- Regulatory audits & readiness checks: stock obligations, price displays, tanker documentation, border-post routing, environmental audit calendars.
- Governance & training: standard operating procedures, staff training records, incident/contamination protocols.
- Enforcement & disputes: responding to inspection directives, appealing refusals/suspensions, and negotiating corrective action plans.
Need assistance to apply, renew, or regularise your operations? Get in touch we will prepare a compliance roadmap tailored to your site, supply chain and risk profile.
Source: Fuel and Services Control Regulations, 2025 (Lesotho), Government Gazette, 13 June 2025.