Downstream fuel moves from bulk storage to the motorist through a network — depots that receive and hold cargo, and forecourts that sell it. Whether you are a supplier appointing distributors or a retailer joining a network, the commercial relationship is governed by a distributor or supply agreement, and the terms in that agreement decide how the network performs.
Exclusive or non-exclusive?
An appointment can be exclusive — the distributor is the sole reseller in a defined territory and the supplier agrees not to appoint others there — or non-exclusive, leaving the supplier free to appoint multiple distributors and to sell directly. Exclusivity is valuable to a distributor and is usually earned with a volume commitment; without one, a supplier will be reluctant to lock up a territory. Define the territory precisely, by province or metropolitan area, to avoid disputes about who can sell where.
Volumes, pricing and credit
- Minimum volume: a monthly litre commitment that justifies exclusivity and gives the supplier predictable offtake; persistent shortfalls should let the supplier reopen the territory.
- Pricing basis: make explicit what the depot price includes and what (duties, ZERA levies, taxes) sits on top, and reserve the right to reprice future orders as landed cost moves.
- Payment terms: prepayment and cash-on-delivery protect the supplier’s cash; any credit should sit under a stated credit limit with the right to withhold deliveries when it is breached or an invoice is overdue.
- Title and risk: fix the point at which title and risk pass — usually on delivery at the depot or collection by the distributor’s transporter.
Branding and product integrity
If sites operate under the supplier’s brand, the agreement should require compliance with brand standards, grant only a licence to use the marks for the term, and require all use to cease on termination. Whatever the branding, the distributor must not adulterate, blend or mislabel product — preserving product integrity through the chain protects both the brand and the motorist, and is a regulatory expectation.
The compliance behind every site
Each link in the network needs its own licences and approvals — procurement, import, storage, wholesale and retail licences from the Zimbabwe Energy Regulatory Authority (ZERA), and, where foreign currency moves, compliance with Reserve Bank of Zimbabwe (RBZ) exchange-control rules. Health, safety and environmental obligations attach to handling and storing fuel. Build these confirmations into the agreement so each party warrants it holds what it needs.
The Fuel Distributor Agreement template on petrol.co.zw captures appointment basis, territory, volumes, pricing, payment and credit, branding and the regulatory confirmations — fill it, generate a PDF, and sign it with an audit trail. It is a starting point to tailor with counsel, not a substitute for advice.