Important Notice and Basis of Preparation

Jump to section

• Overview & contents
• i. Important Notice and Basis of Preparation
• 1. Executive Summary
• 2. The Business and the Regulated Price
• 3. Licensing, Safety and Compliance
• 4. Market and Customers
• 5. SWOT and Competitive Position
• 6. Operations
• 7. Financial Plan
• 8. Break-Even and Debt Service
• 9. Investment Analysis
• 10. Sensitivity and Scenario Analysis
• 11. The Margin Squeeze
• 12. Risk Analysis
• 13. Implementation Roadmap
• 14. Key Performance Indicators
• 15. Key Assumptions
• 16. Conclusion and Recommendation
• A. Appendix A: Consolidated Financial Summary
• B. Appendix B: Volume, Price and Cost Schedules
• C. Appendix C: Funding, Debt and Working Capital Schedules
• D. Appendix D: Risk Register
• E. Appendix E: Glossary

This business plan has been prepared for Quick and Efficient Gas (Pty) Ltd, a proposed licensed LPG cylinder refill shop for a high-traffic peri-urban site in Gauteng. The business installs a 4.9 tonne bulk storage vessel and fills customers’ own cylinders on site, rather than swapping pre-filled branded cylinders.

Regulated prices. LPG sold in cylinders to domestic consumers is a price-controlled product under the Petroleum Products Act. The maximum retail price is gazetted by magisterial district zone and adjusted by the Department of Mineral and Petroleum Resources on the first Wednesday of each month, and the maximum refinery gate price is recalculated monthly by CEF from the basic fuels price of 93 octane petrol. Prices quoted here are current to mid-2026 and change monthly. Any figure in this plan that depends on those prices has a shelf life measured in weeks.

The wholesale buying price. The bulk delivered price assumed here is modelled, not quoted. It is the single most important number in the business and must be negotiated and confirmed in writing with a licensed wholesaler before any capital is committed.

Basis of the figures. The model is built from cylinder fills a trading day, average fill mass, the gazetted price and the assumed bulk cost, with accessories and services modelled as separate lines at their own margins. The income statement, balance sheet and cash flow statement are fully articulated: the balance sheet is derived rather than plugged and balances to the rand in every year, and the closing cash position reconciles exactly to the cash flow statement.

Published benchmarks. Effective 3 June 2026 the maximum retail price of a 9 kilogram cylinder was R365.85 in Zone 1A covering Cape Town and Durban, R378.00 in Zone 9B covering Johannesburg, and R379.35 in Zone 8B covering Bloemfontein — a spread of R13.50 across the country. The maximum refinery gate price for the period 1 July to 4 August 2026 was R16 114.33 a metric ton, with a separate figure of R18 370.34 a metric ton for LPG imported through the Port of Saldanha Bay, where the maximum retail price is R40.84 a kilogram. The refinery gate price is calculated from the basic fuels price of 93 octane lead replacement petrol, converted to rand per metric ton at a density factor of 0.75 and reduced by R74.00 a ton. The national minimum wage is R30.23 an ordinary hour. These are cited where used.

Taxation. Tax is calculated at Small Business Corporation rates, with the Year 1 assessed loss carried forward against subsequent profits.

Statutory approvals. Nothing in this document is a substitute for the approvals set out in Section 3. Refilling LPG cylinders without a licensed filling facility is unlawful and dangerous, and no funder should advance money against a plan that has not secured those approvals first.

Confidentiality. This document is delivered in confidence to the named recipient. It may not be reproduced or circulated in whole or in part without prior written consent.