Petroleum wholesalers can operate under different supply and distribution models. Two common structures are supplier-direct delivery and depot-based storage. The correct model depends on how the business intends to buy, hold and deliver product.
Supplier-direct delivery
In a supplier-direct model, the wholesaler does not necessarily take physical custody of fuel at its own or a third-party depot. The licensed supplier may deliver product directly to the wholesaler’s customer in accordance with the commercial arrangement.
This model can reduce the need for storage infrastructure and may suit businesses focused on trading, customer acquisition and coordinated delivery rather than physical stockholding.
Depot-based storage
A depot-based model gives the wholesaler access to petroleum storage infrastructure. Product may be received, stored and dispatched from the facility, subject to the depot’s operating procedures, capacity, product compatibility and commercial terms.
This model may suit businesses that need stockholding, regional distribution capability, throughput services or more control over product availability.
Which model is better?
Neither model is automatically superior. The important question is which structure genuinely reflects the proposed business. The license application, business plan and supporting documents should consistently describe that model.
Common mistake: mixing models
Problems can arise when an application describes supplier-direct delivery in one section but includes depot documentation suggesting a different operating structure elsewhere. Applicants should avoid adding storage documentation merely because they believe every application requires it.
Related reading
- Petroleum Storage for Wholesale License Applications
- How Fuel Wholesalers Can Secure Credible Depot Access
Storage Partners can help assess the right pathway
Where depot access is appropriate, Storage Partners can assist with structured facility coordination and applicant-specific documentation. Where supplier-direct delivery better reflects the intended business, the licensing documentation should state that model accurately.
