Post by : Bianca
Haleem
In a significant move, Dubai has implemented a rigorous framework for the regulation of petroleum trading throughout the emirate. This comes in response to the Executive Council Resolution No. (85) of 2025, announced by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of The Executive Council.
The resolution aims to bolster economic stability and public safety while addressing environmental concerns by intensifying oversight on the import, manufacture, storage, transport, sale, and supply of petroleum products. It also seeks to mitigate illegal trading and minimize hazards tied to the mishandling of petroleum materials.
All entities involved in these activities, whether located in Dubai’s mainland, special development zones, or free zones including the DIFC, are required to comply, unless exempted by a Cabinet decision.
The Dubai Supreme Council of Energy will have full supervisory oversight over the sector. This includes the establishment of competition guidelines, approval of technical and safety standards, regulation of storage and transportation processes, market concentration management, and ensuring wide compliance throughout the supply chain. Moreover, the Council will be responsible for issuing, renewing, and modifying permits based on insights from the Petroleum Trading Regulation Committee.
The resolution also imposes strict regulations on the establishment and location of fuel stations in line with the Dubai Urban Plan. Additional standards have been outlined for transportation vehicles, storage facilities, and household gas cylinders, while specific areas have been designated as off-limits for petroleum trading.
Any trading activity lacking proper authorization is strictly forbidden. Companies are compelled to confirm the sources of petroleum materials and only procure from Council-approved suppliers. Guidelines for transporting petroleum between emirates, importing materials, and maintaining permits with specified validity periods have also been established.
Licensed entities must enroll in the Ministry of Energy and Infrastructure’s Petroleum Trading Register, trading solely with approved materials, unless utilized for manufacturing or blending purposes. They must display prices visibly, adhere to all safety and technical mandates, and report any incidents within a 24-hour window. Records of product origins must be kept for a minimum of five years.
Penalties for violations will be substantial, with fines potentially doubling for repeat offenders within a year, reaching up to AED 1 million. The Council retains the right to cancel permits, shut down facilities for up to six months, revoke commercial licenses, and confiscate non-compliant petroleum materials and vehicles, which will be disposed of according to Dubai’s legal protocols.
Violators must rectify the consequences of their transgressions at their expense. Should they fail to do so within the stipulated timeframe, the Council will proceed with the necessary actions and levy a 25% administrative fee on the total cost.
All governmental and private entities in Dubai are mandated to fully cooperate with the Council to enforce the new provisions, with possibilities for delegating responsibilities through formal arrangements.
Current operators will need to align with the new regulations within one year from the effective date of the resolution, with an option for a one-year extension if granted. Any previously conflicting provisions are now rendered void. The resolution will take effect upon its publication in the Official Gazette.
English
