Dubai Tightens Fuel Trade Regulations

Regulated Fuel Trade in Dubai: New Decree to Curb Illegal Activities

Known as the economic hub of the United Arab Emirates, Dubai has once again taken a significant step towards sustainability, public security, and economic transparency. The emirate's leadership has issued a new, detailed decree governing the trade of fuel products, with the aim of eradicating illegal trade, and ensuring the protection of human lives, property, and the environment. Under this decree, penalties of up to 1 million dirhams can be imposed on those who violate the new regulations.

Objective of the Decree: Lawful Trade and Public Safety

Issued by the Crown Prince of Dubai, the decree regulates the entire process of fuel trade—from importation, production, storage, and transportation to sales and distribution. The goal is to ensure the sector operates safely, reduce the risks of illegal fuel trading, and protect public health and the environment following the best global practices.

The decree applies to all areas of Dubai, including special development zones and free trade zones such as the Dubai International Financial Centre. The only exceptions are companies whose operations are specifically authorized by a governmental decision of the UAE.

Trading Without a Permit is Prohibited

One of the basic premises of the decree is that no fuel trading activity can be conducted without a permit. During the permitting process, applicants must demonstrate that the fuel they sell or use is reliable and sourced from an entity approved by the Dubai Supreme Council of Energy.

The types and validity periods of permits, as well as the conditions for application and renewal, are defined by detailed regulations. Additionally, precise procedures have been developed for transportation between emirates, establishment of retail fuel stations, and fuel imports.

Fuel Can Only Be Traded from Reliable Sources

According to the regulation, affected businesses may only engage in authorized activities and are required to register themselves in the fuel trade register of the Ministry of Energy and Infrastructure. Fuel can only be purchased from sources that meet technical and safety standards and are approved by the council.

Exceptions are made when imported fuel is intended for production or blending. In such cases, strict documentation requirements apply to traders.

Transparency and Accountability

The new regulations mandate clear pricing displays, adherence to storage and transportation standards, and prior council approval for any changes. In the event of an accident or irregularity, involved parties must report within 24 hours, and records related to resources must be kept for at least five years.

Penalties and Sanctions

The decree makes it clear that violations can have severe consequences. In collaboration with other authorities, the Dubai Supreme Council of Energy can take the following measures:

- Revocation of permits,

- Closure of facilities for up to six months,

- Suspension of commercial licenses,

- Confiscation, destruction, or re-exportation of non-compliant fuel and vehicles.

Violators must restore the pre-violation state at their own expense, including repair of damages. If not completed by the deadline, the council may carry out the work, with an additional 25 percent administrative fee charged.

Role and Powers of the Council

The Dubai Supreme Council of Energy plays a pivotal role in regulation. Its responsibilities include:

- Determining competition rules,

- Approving technical standards for fuel trade,

- Designating locations for new stations based on the Dubai Urban Plan,

- Standardizing storage capacity and transportation equipment,

- Defining regulations for domestic gas cylinders and their safety valves.

The council is authorized to delegate some of its tasks to public or private entities subject to official agreements. Existing fuel traders have a one-year grace period for compliance, extendable by another year if approved by the council chairman.

Closing Thoughts

Dubai's latest decree is not just about strengthening legality but is part of a comprehensive, eco-conscious, and safe vision for the future. Regulating activities related to fuels plays a key role in ensuring the city's energy independence, economic stability, and public safety.

With the introduction of the new rules, Dubai once again sets an example for other countries in the region on how to make decisions that are economically competitive and socially responsible. Curbing illegal activities, increasing market transparency, and a unified permitting practice benefit not only authorities but also the public and responsible businesses.

(Source of the article: based on a decree issued by the Crown Prince of Dubai.)