Hamdan Bin Mohammed Issues Resolution To Regulate Petroleum Trading Activities In Dubai

H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has issued Executive Council Resolution No. (85) of 2025. This resolution regulates petroleum products trading in Dubai, aligning with global standards to ensure economic and environmental security. It addresses the import, manufacture, storage, transport, sale, and supply of petroleum products to prevent illegal trading and protect public safety.

The resolution is applicable to all entities involved in these activities across Dubai, including special development zones and freezones like the Dubai International Financial Centre. However, companies exempted by a UAE Cabinet decision are not covered under this regulation.

The Dubai Supreme Council of Energy is tasked with overseeing petroleum trading activities in the emirate. Its responsibilities include setting competition rules, approving technical standards for trading and storage, and ensuring compliance with health and safety requirements. The Council also manages permits based on recommendations from the Petroleum Trading Regulation Committee.

Entities must register in the Petroleum Trading Register maintained by the Ministry of Energy and Infrastructure. They are required to trade only materials from Council-approved sources that meet technical standards unless intended for manufacturing or blending purposes.

The resolution prohibits any person from engaging in petroleum trading without authorisation from the licensing authority. Activities can only proceed after verifying the source of petroleum materials and submitting documentation confirming acquisition from a Council-approved company.

It outlines permit types and validity periods, procedures for obtaining them, rules for transporting petroleum between emirates, establishing retail fuel stations, and importing petroleum materials.

Compliance and Penalties

Violations incur fines that double for repeated offences within a year, up to AED1 million. The Supreme Council of Energy may cancel permits or temporarily close facilities for up to six months if violations occur. Non-compliant vehicles may be seized according to Law No. (23) of 2015 concerning vehicle disposal in Dubai.

The violator must remove the cause of violation at their own expense within a set deadline. If they fail to do so, the Council may undertake the work at their expense plus 25% administrative costs.

Implementation Timeline

Existing operators must comply with this resolution within one year from its effective date. An extension of one year is possible if approved by the Chairman of the Council. The Chairman will issue necessary decisions for implementing this resolution.

This regulation annuls any conflicting resolutions or provisions and takes effect upon publication in the Official Gazette.

With inputs from WAM