Dubai is issuing new regulations to regulate the fuel trade and tighten safety standards

The decision was issued by Sheikh Hamdan Bin Mohammed Bin Rashid Al Mashid Al Maktoum, Deputy Prime Minister of Dubai, Deputy Prime Minister and Minister of Defense, in his capacity as Chairman of the Executive Council of Dubai.

The measures support a long-term economic and environmental vision by controlling activities including import, production, storage, transportation, sales and the provision of best practices for the world.

Dubai Petroleum Trading

The resolution also aims to curb illegal trade, reduce associated risks and protect lives, property and public safety.

These provisions apply to all entities operating in these activities throughout Dubai – including special development and free zones such as the Dubai International Management Center – except for companies dismissed by the UAE CABSION decision.

Under the decision, the Supreme Energy Council of Dubai has been tasked with overseeing all fuel trading activities in the Emirate.

Its responsibilities include competition laws and market regulation, agreeing to technical standards and commercial procedures, storage, transportation, full sale of petroleum, and ensuring full compliance with health, safety and environmental requirements.

Authorization Requirements

The Council will also issue, renew and amend permits based on recommendations from the Petroleum Trade Regulatory Committee.

It will:

• Determine the number and locations of gas stations in line with Dubai’s urban plan
• Allow traffic levels and storage areas
• Set requirements for domestic gas cylinders – including safety valves and markings
• Identify areas where fuel trading is prohibited, by contacting the relevant authorities

The decision prohibits any person from engaging in fuel trading activities in Dubai without approval from the licensing authority.

Operations can only be carried out after confirming the source of the fuel and submitting documents to confirm receipt from the Council’s approved company.

It contains information on the types and timings of approvals, the procedures for obtaining them, the rules governing the transportation of fuel products between fuel stations and stores and the importation of fuel products.

Businesses working in Petroleum trade are required to carry out their authorized activities only, and register in the register of petroleum trading maintained by the Ministry of Information and Infrastructure that obtains technical standards, without having to enter introductions.

Price display

Businesses must accurately reflect prices, follow safety standards and technical standards for storage, transportation and handling, and obtain prior approval from the Council for any permit changes.

Operators must report incidents within 24 hours and keep records on physical sources for at least five years.

According to the solution, the violation of the rules of the trade of fuel receives a fine that is returned for repeated offenses within one year, up to a million dirhams.

The Supreme Council of Dubai, in coordination with the relevant authorities, may cancel permits, nearby areas that arrive temporarily for six months, revoke licenses for selling merchandise, and destroy or drive petroleum vehicles and non-compliant vehicles.

Disposal of seized vehicles will follow law no. (23) of 2015 regarding the dumping of vehicles in Dubai.

Penalty and violation

The decision requires the violators to remove the cause of the violation, repair any damage and restore the conditions to their original state at their own expense within a specified deadline.

If the Violator fails to comply, the Council can carry out remedial work at the cost of the reward, adding 25 percent as administrative costs, with the council’s assessment being considered the council’s final.

All governmental and non-governmental agencies in the Emirate must fully cooperate with the Council and provide all necessary support.

The Council may delegate any of its responsibilities to public or private bodies through formal agreements.

Existing operators must comply with the decision within one year from its effective date, with the option of one year subject to approval by the Chairman of the Council.

The chairman will also issue the necessary decisions to implement this decision.

The decision is made by any conflicting provisions and takes effect from the date of its publication in the Official Gazette.