New Regulations for Petroleum Trading in Dubai
In a significant move for Dubai’s economy and environmental standards, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of The Executive Council, has introduced Executive Council Resolution No. (85) of 2025. This resolution aims to regulate petroleum product trading within the Emirate, covering aspects from importation to manufacturing and sales.
Aligning with Global Practices
The resolution reflects Dubai’s commitment to both economic growth and environmental security. By imposing regulations on the import, manufacture, storage, transport, sale, and distribution of petroleum products, it aims to foster compliance with international best practices. One of its primary objectives is to combat illegal trading and minimize its associated risks, thereby enhancing public safety and protecting lives and property.
Broad Scope of Application
This new framework applies to all businesses involved in petroleum-related activities within Dubai, including those in special development zones and free zones, such as the Dubai International Financial Centre. However, certain companies may be exempt based on decisions made by the UAE Cabinet.
Responsibilities of the Dubai Supreme Council of Energy
The Dubai Supreme Council of Energy is tasked with overseeing petroleum trading activities in the emirate. This includes establishing competitive market rules, setting technical standards for various petroleum-related processes, and ensuring that health, safety, and environmental guidelines are met. The Council is empowered to issue permits, make amendments, and determine the strategic locations for fuel stations in alignment with the Dubai Urban Plan.
Permit Regulations and Compliance
As part of this resolution, it is illegal for individuals or companies to engage in petroleum trading without the necessary authorization from the licensing authority. Activities can only commence after verifying the petroleum sources and presenting documentation from Council-approved companies.
Additionally, the resolution outlines the types and durations of permits and the procedures for obtaining them. This includes how to transport petroleum materials between emirates and the establishment of retail fuel stations.
Ensuring Safety and Accountability
To enhance accountability, petroleum trading entities must register with the Petroleum Trading Register managed by the Ministry of Energy and Infrastructure. They are only permitted to trade materials sourced from Council-approved suppliers, ensuring compliance with technical standards—except in instances where the materials are designated for manufacturing or blending.
Petroleum trading businesses are also required to display prices transparently, adhere to safety standards during storage and transportation, and acquire prior approval for any permit modifications. Any incidents must be reported within 24 hours, and records of materials sourced must be maintained for a minimum of five years.
Penalties for Non-compliance
Violations related to the new trading regulations can result in substantial fines, which increase for repeat offenses within a year, potentially reaching up to one million dirhams. In severe cases, the Supreme Council of Energy has the authority to cancel permits, temporarily close facilities, or revoke commercial licenses, alongside measures for the seizure or destruction of non-compliant materials.
Furthermore, violators must rectify issues caused by their infractions at their own cost within a set deadline, or the Council may intervene at an additional charge.
Cooperation and Future Compliance
All governmental and non-governmental entities are obliged to fully support the Council in enforcing these regulations. Additionally, the Council has the ability to delegate responsibilities to other public or private organizations via formal agreements.
Current operators in the petroleum sector will need to adhere to these new regulations within one year from their effective date, with a possible extension available upon approval.
Final Notes
This resolution represents a paradigm shift in how petroleum trading will be managed in Dubai, aiming to ensure sustainable practices while enhancing public safety and regulatory compliance. All conflicting previous resolutions are now rendered null under the new guidelines.
