Economy Politics Local 2025-11-28T07:26:54+00:00

Dubai Introduces Strict Regulations for Petroleum Trading

Dubai has issued a new resolution to combat illegal petroleum trading, regulating import, storage, transport, and sale activities with strict rules for all entities in the emirate.


Dubai Introduces Strict Regulations for Petroleum Trading

Dubai has issued a new resolution to combat illegal petroleum trading and mitigate its impact, safeguarding lives, property, and public safety. Executive Council Resolution No. (85) of 2025 regulates activities such as the import, manufacture, storage, transport, sale, and supply of petroleum in line with global best practices. The provisions apply to all entities engaged in these activities across Dubai, including special development zones and freezones like the Dubai International Financial Centre, except for companies exempted by a UAE Cabinet decision. The Dubai Supreme Council of Energy is responsible for overseeing petroleum trading. Its duties include setting competition rules, approving technical standards, issuing permits, determining fuel station locations, and approving standards for transport vehicles and storage facilities. The resolution prohibits any person from engaging in petroleum trading without authorization. Violators face fines, doubled for repeat offenses within a year, up to a maximum of one million dirhams. The Council may also cancel permits, temporarily close facilities for up to six months, revoke commercial licenses, and seize or destroy non-compliant petroleum materials and vehicles. Existing operators must comply within one year, with a possible one-year extension approved by the Chairman. If they fail to do so, the Council may carry out the work at their expense, plus a 25% administrative fee. In his capacity as Chairman of The Executive Council of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued the resolution. He will issue all decisions needed for its implementation. Any conflicting resolution is annulled. Vehicles found in violation may be seized, with disposal handled under Law No. (23) of 2015. The resolution also sets out permit types, validity periods, procedures for obtaining them, rules for transporting materials, establishing fuel stations, and importing petroleum. Entities must only conduct authorized activities, register in the Petroleum Trading Register, and trade only from Council-approved sources meeting technical standards. They must display prices, follow safety standards, report incidents within 24 hours, and keep records of material sources for at least five years.