Dubai Enhances Regulations on Petroleum Trade

Dubai has unveiled a robust regulatory framework to oversee the trading of petroleum products throughout the emirate, following the enactment of Executive Council Resolution No. (85) of 2025 by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai.

This resolution is a significant leap toward maintaining economic stability, enhancing environmental integrity, and ensuring public safety by imposing stricter control over activities related to the import, production, storage, transport, sale, and distribution of petroleum products. Additionally, it seeks to prevent illicit trade and minimize risks associated with improper management of petroleum materials.

The new regulations mandate that all organizations engaged in these operations—whether situated in Dubai’s mainland, special development zones, or free zones such as the DIFC—must comply unless exempted by a UAE Cabinet decision.

The Dubai Supreme Council of Energy will hold complete regulatory authority over the sector. Its duties include establishing competition criteria, sanctioning technical and safety norms, overseeing storage and transport protocols, managing market concentration, and ensuring compliance throughout the supply chain. Additionally, the Council will oversee the issuance, renewal, and revision of permits following guidance from the Petroleum Trading Regulation Committee.

The resolution imposes stringent stipulations for the establishment and placement of fuel stations, in line with Dubai’s Urban Development Plan, and specifies standards for transport vehicles, storage facilities, and domestic gas cylinders while highlighting zones where petroleum trading is prohibited.

Engaging in trade without proper authorization is explicitly forbidden. Companies must validate their petroleum material sources and confirm that all supplies are obtained from providers sanctioned by the Council. Specific regulations have also been established for transporting petroleum between emirates and for securing necessary permits with clearly defined validity periods.

Licensed businesses are required to register with the Ministry of Energy and Infrastructure’s Petroleum Trading Register and can only trade approved materials, except for manufacturing or blending purposes. They must clearly display prices, adhere to all safety and technical standards, and report any incidents within 24 hours. Records of product origins must be retained for a minimum of five years.

Infringements will incur substantial penalties, with fines potentially doubling for recurring violations within a one-year period, capped at AED 1 million. The Council reserves the right to revoke permits, shut down facilities for up to six months, cancel commercial licenses, and confiscate non-compliant petroleum products and vehicles for disposal as per Dubai’s legal regulations.

Any offender is required to rectify the consequences of their violation at their expense. Should they neglect to comply within the stipulated timeframe, the Council will undertake the necessary corrections and charge the entire cost plus an administrative fee of 25%.

All government and private sector entities in Dubai are mandated to fully support the Council in executing these new measures. The Council may also assign responsibilities to public or private entities through formal agreements.

Existing operators have one year from the effective date to comply with the new resolution, with a possibility of a one-year extension upon approval. Any prior conflicting provisions will be rendered invalid. The resolution becomes effective upon its publication in the Official Gazette.