How To Properly Store Used Oil Before Collection — A Guide For Businesses

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Whether your business changes oil on a single vehicle each week or operates a fleet of hundreds of trucks, the period between oil generation and collection is a window of risk. Improperly stored used oil can spill, leak, contaminate groundwater, attract pests and create fire hazards — all of which carry legal, financial and reputational consequences. Getting your interim storage right is not complicated, but it requires attention to a few key principles.

Why Storage Matters

Under the National Environmental Management: Waste Act, your duty of care for used oil begins the moment it is generated — not when it leaves your premises. This means that how you store oil while you wait for collection is part of your legal compliance obligation. An inspection that finds improperly stored used oil on your premises can result in a compliance notice, a fine, or in serious cases, criminal proceedings against responsible individuals.

Beyond the legal dimension, poor oil storage is simply bad practice. Spills contaminate soil and drainage systems. Leaking containers create slip hazards. And oil that becomes mixed with rainwater or other fluids may be rejected by your collector or require more expensive processing — which can affect the rebate you receive.

The Right Containers

Used oil should always be stored in containers specifically designated for that purpose. The most common options are:

• Steel or HDPE drums (200L): Standard 200-litre drums with sealed lids are the most common container for smaller volumes. Ensure they are clearly labelled "USED OIL — HAZARDOUS WASTE" and that lids are tightly secured at all times.
• Intermediate Bulk Containers (IBCs / Flow Bins): For volumes between 500 and 1,000 litres, IBCs are a practical option. They should be rated for oil storage and placed on a drip tray or bunded area.
• Fixed above-ground tanks: For high-volume generators, a fixed storage tank is the most efficient option. Tanks should be above-ground, fitted with level indicators, and located within a bunded containment area.

Location And Containment

Where you store used oil is as important as what you store it in. Key principles include:

• Store containers on an impermeable surface — concrete or sealed asphalt — not on bare soil or gravel.
• Provide secondary containment (bunding) that can hold at least 110% of the largest single container's volume.
• Keep storage areas away from stormwater drains, watercourses and any water supply infrastructure.
• Store under cover where possible to prevent rainwater contamination and UV degradation of containers.
• Ensure adequate ventilation — used oil vapours can accumulate in enclosed spaces and create fire or health risks.

What Not To Mix

One of the most common errors — and one that causes real problems for recycling processors — is mixing used oil with other substances. Never mix used oil with:

• Coolant or antifreeze — this creates an emulsion that is very difficult to process
• Brake fluid or hydraulic fluid — different waste streams with different processing requirements
• Solvents, degreasers or chemicals
• Fuel — petrol or diesel
• Water, particularly rainwater ingress into open containers

Contaminated oil may still be collectible, but it is likely to result in a reduced or zero rebate, and in some cases a disposal charge rather than a payment. Keep your oil streams separate and clearly labelled.

Labelling And Record Keeping

Every used oil storage container should be clearly labelled with its contents and the hazard classification. Keep a log of oil additions — date, quantity and source — as this will support your Waste Manifest documentation at the time of collection.

When To Call For Collection

Do not wait until containers are overflowing before arranging collection. Auto Blue Oils recommends scheduling collection when containers reach 75–80% capacity, which provides a comfortable buffer and avoids the risk of overflow. If you are unsure about your storage setup or have questions about compliance, our team is happy to conduct an informal site assessment at no charge. Contact us on (011) 930 0100.