Business
Dubai issues new resolution to regulate petroleum trading and strengthen safety standards
The resolution was issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, in his capacity as Chairman of The Executive Council of Dubai.
The measures support Dubai’s long-term vision for economic and environmental security by regulating activities including the import, manufacture, storage, transport, sale and supply of petroleum, in line with global best practices.
Dubai petroleum trading
The resolution also aims to curb illegal trading, mitigate associated risks and safeguard lives, property and public safety.
The provisions apply to all entities operating in these activities across Dubai — including special development zones and freezones such as the Dubai International Financial Centre — except companies exempted by a UAE Cabinet decision.
Under the resolution, the Dubai Supreme Council of Energy is tasked with overseeing all petroleum trading activities in the emirate.
Its responsibilities include setting rules on competition and market concentration, approving technical standards and procedures for the trading, storage, transport, sale and use of petroleum, and ensuring full compliance with health, safety and environmental requirements.
Authorisation requirements
The Council will also issue, renew and amend permits based on recommendations from the Petroleum Trading Regulation Committee.
It will:
- Determine the number and locations of fuel stations in line with the Dubai Urban Plan
- Approve standards for transport vehicles and storage facilities
- Set requirements for household gas cylinders — including safety valves and seals
- Identify areas where petroleum trading is prohibited, in coordination with relevant authorities
Activities may only be conducted after verifying the source of petroleum materials and submitting documentation confirming acquisition from a Council-approved company.
It details the types and validity periods of permits, procedures for obtaining them, rules governing the transport of petroleum materials between emirates, and requirements for establishing retail fuel stations and importing petroleum materials.
Entities operating in petroleum trading are required to conduct only their authorised activity, register in the Petroleum Trading Register maintained by the Ministry of Energy and Infrastructure, and trade only materials sourced from Council-approved companies that meet technical standards, unless imports are intended for manufacturing or blending purposes.
Price displays
Businesses must display prices clearly, follow safety and technical standards for storage, transport and handling, and obtain prior Council approval for any permit changes.
Operators must report incidents within 24 hours and retain records of material sources for at least five years.
According to the resolution, violations of petroleum trading rules incur fines that are doubled for repeated offences within one year, up to a maximum of one million dirhams.
The Dubai Supreme Council of Energy, in coordination with relevant authorities, may cancel permits, temporarily close facilities for up to six months, revoke commercial licences, and seize, destroy or re-export petroleum materials and non-compliant vehicles.
Disposal of seized vehicles will follow Law No. (23) of 2015 concerning the disposal of vehicles in Dubai.
Fines and violations
The resolution requires violators to remove the cause of the violation, repair any damage and restore conditions to their original state at their own expense within a prescribed deadline.
If the violator fails to comply, the Council may carry out the corrective work at the violator’s expense, adding 25 per cent as administrative costs, with the Council’s estimate deemed final.
All government and non-government entities in the emirate must fully cooperate with the Council and provide all required support.
The Council may delegate any of its responsibilities to public or private bodies through formal agreements.
Existing operators must comply with the resolution within one year from its effective date, with the option of a one-year extension subject to approval from the Chairman of the Council.
The Chairman will also issue the decisions necessary to implement the resolution.
The resolution annuls any conflicting provisions and takes effect from the date of its publication in the Official Gazette.
