Post by : Badri Ariffin

Dubai has unveiled comprehensive regulations for the petroleum sector, creating a more stringent framework for the import, storage, transport, and sale of petroleum products throughout the emirate. This initiative comes in response to Executive Council Resolution No. 85 of 2025, issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai.

This resolution represents one of the most significant reforms in recent years, aimed at enhancing economic stability and protecting the environment. It encompasses all businesses operating in Dubai, including those in free zones and special development areas, unless exempted by federal provisions.

In line with these new rules, the Dubai Supreme Council of Energy will oversee the petroleum sector, assuming responsibilities that include establishing competition standards, approving technical specifications, issuing permits, and maintaining compliance with health, safety, and environmental laws. The Council is also tasked with identifying appropriate locations for fuel stations, setting standards for transport vehicles and storage sites, and designating zones where petroleum trading is restricted.

Authorization is now mandatory for any entity engaging in petroleum trading. Companies must submit verified documentation that proves the origins of their petroleum products to obtain or renew permits. Comprehensive procedures have also been established for the transportation of petroleum, establishment of fuel stations, and importation of materials into the emirate.

Licensed businesses must register with the Ministry of Energy and Infrastructure and can only trade from certified sources. They are required to display prices clearly, adhere to rigorous safety protocols, maintain records of petroleum sources for a minimum of five years, and promptly report any incidents within a 24-hour timeframe.

The resolution introduces a tiered penalty structure, where fines could reach up to AED 1 million. Repeat offenses will incur doubled penalties. In serious violations, authorities may halt operations, revoke permits, or cancel commercial licenses entirely. The Council is also authorized to confiscate non-compliant products and vehicles.

Entities that cause damage must bear the repair costs, and a 25 percent administrative fee will apply if government intervention is needed. Both governmental and non-governmental agencies are mandated to assist in enforcing these regulations, reflecting a coordinated effort to enhance oversight within the petroleum sector.

The enactment of this resolution is anticipated to transform the petroleum trading landscape in Dubai, prioritizing transparency, accountability, and safety throughout the supply chain.

#Dubai #UAE News #Sheikh Hamdan