New fuel station regulations in Oman: Tech integration, sustainability, stricter enforcement and hefty fines

Muscat: In a move to enhance governance and operational standards in Oman’s fuel distribution sector, the Ministry of Commerce, Industry, and Investment Promotion has introduced a comprehensive regulatory framework for licensing fuel stations across the Sultanate.

The new regulations focus on support for new technologies such as electric vehicle charging, hydrogen refueling, and solar power, aligning with international safety and environmental standards.

Additionally, the regulations introduce clear penalties for non-compliance. Fines of up to 3,000 riyals (Dh28,620) will be imposed for violations, while stations operating with expired licenses will incur a 500 riyal/month penalty.

Furthermore, stations will have their licenses automatically cancelled for inactivity exceeding six months or if false information was provided during the licensing process.

These updates aim to improve market organisation, promote sustainable growth, and ensure that fuel stations across the country operate efficiently and in line with modern standards.

Ministerial Decision No. 142/2025, issued by Qais bin Mohammed al Yousef, Minister of Commerce, Industry, and Investment Promotion, came into effect on May 4, replacing all previous licensing regulations. Fuel stations are now required to regularize their status within one year from the regulation's implementation.

The new regulations emphasize that the activity of establishing and operating fuel filling stations cannot proceed without obtaining a license. Moreover, it prohibits the sale of fuel outside designated sites, with the exception of mobile fuel stations.

To prevent market saturation and ensure sustainable growth, the regulations impose strict distance requirements:

Violations of these distance buffers or other requirements will result in fines ranging from 1,000 to 3,000 riyals, and licenses may be cancelled if a station remains inactive for more than six months or if any false information was provided during the licensing process.

The Ministry of Commerce, Industry, and Investment Promotion will coordinate with relevant authorities to designate locations for fuel stations under usufruct agreements. These designated sites will then be available for public bidding. Applicants for private fuel stations must submit details such as the type of fuel, the number of vehicles and equipment, and the distance to the nearest existing station.

As part of the modernization efforts, the regulation promotes the adoption of solar energy and the integration of electric vehicle charging points and hydrogen refueling stations at fuel stations. These steps are in line with global environmental standards and Oman’s commitment to reducing its carbon footprint.

Applicants wishing to establish and operate fuel stations must submit an application through an authorized fuel marketing company. The company will evaluate the feasibility of the proposed site, and if viable, the request will be forwarded to the relevant department for approval.

After initial approval, a temporary one-year license will be granted for construction. If the project is not completed within that time, the license will be canceled, and the application cannot be reconsidered for two years.

For marine and above-ground fuel stations, applicants must submit a feasibility study. The site must be designated for commercial, industrial, or tourism purposes. Marine stations must be allocated by the Ministry of Agriculture, Fisheries and Water Resources for fishing ports, or by the Ministry of Transport for commercial ports.

To improve market organization, fuel station sites will be allocated based on transparent criteria, including a bidding process to identify the most suitable locations for development. A transitional period will allow existing stations time to adapt to the new standards, with the Ministry offering support during this phase.

The new fuel station regulations will play a pivotal role in modernizing Oman’s fuel distribution network. With a focus on technology, sustainability, and strict enforcement, the changes aim to ensure the continued growth and efficiency of the sector while keeping up with international standards.

As of 2024, Oman has around 680 fuel stations nationwide. With these new regulations, the sector is poised for significant transformation, ensuring that both existing and future stations operate in line with the government’s vision for a more sustainable and efficient fuel infrastructure.

-- Fahad Al Mukrashi is a freelance journalist based in Muscat