Dubai: Illegal petroleum dealers could face up to Dh1 million in fines

Dubai: The new Executive Council Resolution No. (85) of 2025 mandates clear price display, prior approval for permit changes, prompt reporting of incidents within 24 hours, and maintenance of records on material sources for at least five years. Violations incur fines up to Dh1 million, doubled for repeated offences within one year. In his capacity, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, issued the resolution regulating petroleum products trading activities across the emirate.

The Dubai Supreme Council of Energy will oversee petroleum trading from import and manufacture to storage, transport, sale, and supply. It will set competition and market concentration rules, approve technical standards and procedures, and enforce health, safety, and environmental requirements. The Council will issue, renew, and amend permits based on Petroleum Trading Regulation Committee recommendations, determine fuel station numbers and locations under Dubai Urban Plan, approve vehicle, facility, and gas cylinder standards including safety valves and seals, and designate prohibited trading zones with relevant authorities.

According to the resolution, no person will engage in petroleum trading without licensing authority authorisation after verifying material sources and submitting proof from Council-approved companies. Entities will limit activities to authorised scope, register in the Ministry of Energy and Infrastructure's Petroleum Trading Register, and source only compliant materials unless for manufacturing or blending. The framework will detail permit types, validity periods, obtaining procedures, inter-emirate transport rules, retail fuel station setup, and import protocols, applying emirate-wide, including free zones like DIFC, except UAE Cabinet-exempt firms.

The Supreme Council of Energy will cancel permits, close facilities up to six months, revoke licences, and seize, destroy, or re-export non-compliant materials and vehicles per applicable law, with seized vehicles handled under Law No. (23) of 2015. Violators will rectify issues, repair damage, and restore conditions at own expense within deadlines, or face Council intervention plus 25 percent administrative costs, with Council estimates final. All entities will cooperate fully; the Council will delegate via agreements as needed. Existing operators will comply within one year, extendable once by Chairman approval.

The resolution aims bolster Dubai's economic and environmental security in line with global best practices, curbing illegal trade while protecting lives, property, and public health. It will annul conflicting rules and activate upon Official Gazette publication, extending prior Council diesel and LPG inspections for sector-wide compliance.