Stricter Regulations for Petroleum Trading in Dubai

Post by : Bianca Suleiman

Dubai has launched an extensive regulatory framework aimed at overseeing the petroleum products trade throughout the emirate, following the release of Executive Council Resolution No. (85) of 2025 by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince and Chairman of The Executive Council.

This resolution plays a critical role in bolstering economic stability, environmental safety, and public well-being by strengthening control over the import, manufacturing, storage, transport, sale, and distribution of petroleum products. The initiative also seeks to combat illicit trade and mitigate risks associated with the improper handling of petroleum materials.

Under these new stipulations, all businesses engaged in these activities—be it within Dubai's mainland, special development zones, or free zones like the DIFC—are required to comply, unless a UAE Cabinet exemption applies.

Full regulatory oversight will be held by the Dubai Supreme Council of Energy, tasked with establishing competitive guidelines, endorsing technical and safety criteria, managing storage and transportation protocols, monitoring market conditions, and ensuring compliance throughout the supply chain. The Council is also responsible for issuing, renewing, and modifying permits as advised by the Petroleum Trading Regulation Committee.

The new guidelines implement stringent controls regarding the establishment and geographical positioning of fuel stations in accordance with the Dubai Urban Plan, and set standards for transport vehicles, storage infrastructures, and domestic gas cylinders. Zones identified as restricted will prohibit any petroleum trading activities.

Conducting trades without proper authorization is explicitly banned. Companies need to authenticate the origins of petroleum materials, ensuring that all supplies are obtained from Council-sanctioned providers. Additional regulations govern the transportation of petroleum across emirates, material imports, and permit acquisition with specified validity periods.

All licensed firms must register with the Ministry of Energy and Infrastructure’s Petroleum Trading Register and can only trade approved materials unless for manufacturing or blending purposes. They are obliged to display prices clearly, adhere to safety and technical directives, and report incidents within a 24-hour timeframe. Records of product origin must be preserved for a minimum of five years.

Severe penalties will be enforced for violations, with fines that double for repeat offenses within a year, capped at AED 1 million. The Council holds the authority to revoke permits, shut down facilities for up to six months, annul commercial licenses, and confiscate non-compliant petroleum materials and vehicles, which will be disposed of according to Dubai’s legal regulations.

Violators are required to remedy any effects of their infractions at their own cost. Should they fail to address the violations within the set timeframe, the Council will undertake the necessary actions and charge the full expense, plus an additional 25% administrative fee.

All governmental and private sector entities in Dubai are mandated to fully collaborate with the Council in executing these new regulations. The Council also holds the authority to delegate responsibilities through formal agreements with public or private organizations.

Current operators must comply with this resolution within one year from its effective date, with a potential one-year extension available upon request. Previous conflicting provisions are now rendered void. The resolution will be enacted upon its publication in the Official Gazette.