Post by : Badri Ariffin

Dubai has rolled out a detailed regulatory framework to oversee petroleum product trading throughout the emirate, following the issuance of Executive Council Resolution No. (85) of 2025 by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai.

This resolution represents a significant shift toward protecting economic stability, environmental integrity, and public safety by tightening control over activities such as the import, manufacturing, storage, transport, sale, and supply of petroleum products. It also targets illegal trading and aims to minimize dangers associated with improper handling of petroleum materials.

All businesses engaged in these activities—whether located in Dubai's mainland, special development zones, or free zones like the DIFC—must comply with the new regulations unless exempted by a decision from the UAE Cabinet.

The Dubai Supreme Council of Energy is tasked with overseeing the sector, including setting competition standards, approving technical and safety regulations, managing transport and storage practices, and ensuring adherence across the supply chain. The Council will also be responsible for issuing, renewing, and modifying permits based on the recommendations from the Petroleum Trading Regulation Committee.

Strict regulations concerning the establishment and location of fuel stations align with the Dubai Urban Plan, which also sets standards regarding transport vehicles, storage facilities, and domestic gas cylinders. Certain areas will be designated as no-trade zones for petroleum products.

Unauthorized trading is strictly forbidden. Companies must confirm the origin of petroleum products, ensuring that all supplies come from Council-approved sources. Detailed regulations for the transport of petroleum between emirates, importing materials, and obtaining permits with set validity periods are also outlined.

Licensed firms are required to register with the Ministry of Energy and Infrastructure’s Petroleum Trading Register and may only trade approved materials unless for manufacturing or blending purposes. They must clearly display prices, adhere to safety and technical standards, and report incidents within 24 hours. Records of product origins must be retained for a minimum of five years.

Penalties for violations are severe, with fines doubled for repeat offences within one year, capped at AED 1 million. The Council has the authority to revoke permits, close facilities for up to six months, annul commercial licenses, and seize non-compliant petroleum products and vehicles for disposal under Dubai's existing legal framework.

Violators must rectify and mitigate the aftermath of any infractions at their own cost. Should they fail to comply within the specified time frame, the Council will intervene and charge the full cost plus a 25% administrative fee.

All government and private entities in Dubai are mandated to fully cooperate with the Council in executing these new regulations. The Council may also delegate responsibilities to public or private organizations through formal agreements.

Existing operators are required to comply with the new resolution within one year from its effective date, which can be extended for an additional year upon approval. Any previous conflicting provisions are now nullified. The resolution will take effect once published in the Official Gazette.

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