Dubai is strengthening oversight of Dubai petroleum products trading after field inspections uncovered cases of diesel being stored or traded at unlicensed facilities and transported through methods that did not meet approved requirements.
The Dubai Supreme Council of Energy (DSCE) said the move is part of wider efforts to improve safety, compliance and transparency across the petroleum sector, covering activities such as storage, transport, distribution and supply.
The latest action comes under Executive Council Resolution No. 85 of 2025, which established a comprehensive framework for regulating petroleum products trading in the emirate.
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Dubai petroleum products trading faces stronger compliance checks
The DSCE is the competent authority responsible for regulating petroleum products trading activities in Dubai. Under the regulatory framework, businesses involved in petroleum products must comply with approved licensing, technical, safety, environmental and operational requirements.
The official framework covers a wide range of activities, including importing, storing, transporting, selling, purchasing, distributing and supplying petroleum products.
Businesses can also be required to obtain specific permits for activities such as petroleum product storage, transport, distribution, sale and purchase.
For businesses operating in the sector, this means that maintaining a valid commercial licence alone may not be sufficient. Companies must also hold the relevant petroleum products permit and comply with the conditions attached to it.
External resource: Businesses can review the official Dubai petroleum products trading regulatory framework for more information.
Inspections uncover unlicensed diesel activity
According to the latest update, joint inspection campaigns conducted by the DSCE and relevant government entities found instances where diesel was stored or traded at facilities that were not licensed for the activity.
Authorities also identified transportation practices that did not meet approved requirements.
Such violations can create significant safety concerns because petroleum products require controlled storage, handling and transportation. Leaks, improper containment and unsuitable transport arrangements can increase risks to workers, facilities and the surrounding environment.
The DSCE has therefore urged companies to verify that their storage locations, vehicles and transportation methods meet the required standards.
Why authorised storage facilities matter
Storage is one of the most important parts of Dubai petroleum products trading because petroleum products can present fire, environmental and operational risks if handled incorrectly.
Under Resolution No. 85 of 2025, the SCE has powers to approve technical standards and requirements for petroleum product storage facilities and for the storage, manufacturing, filling and transportation of petroleum products.
The resolution also requires establishments to comply with the technical requirements applicable to storage facilities and transportation methods.
Businesses must verify product sources
Another important part of Dubai’s regulatory approach is product traceability.
Under the resolution, businesses must not deal in petroleum products obtained from unauthorised or unapproved sources. Establishments are also required to retain books, records and invoices proving the sources of petroleum products for the specified period.
This is particularly important for diesel trading because authorities want to prevent unauthorised products from entering the market.
The rules also require petroleum products to comply with approved specifications and technical standards.
For businesses, maintaining accurate purchase records, supplier information, invoices and transportation documentation can therefore play an important role in demonstrating compliance during inspections.
Stricter rules for diesel transportation
Transportation is another major focus of the regulatory framework.
The DSCE has highlighted the need for businesses to use vehicles and transportation methods that meet approved requirements. Companies are also expected to follow safe operating procedures during loading, transportation and handling.
Resolution No. 85 of 2025 establishes specific permit requirements for transporting petroleum products within Dubai and between the emirates.
The framework also gives authorities the ability to establish technical standards for vehicles used to transport and distribute petroleum products.
This means companies involved in Dubai petroleum products trading need to pay attention not only to where products are stored, but also to how they are moved.
Potential penalties for violations
Dubai’s petroleum trading regulations also include financial penalties and other enforcement measures.
The official resolution lists fines for a range of violations. For example, selling, purchasing, transporting, distributing or filling diesel within Dubai without the required permit can result in a AED 25,000 fine.
Other violations carry higher penalties. These include dealing in diesel that does not meet approved technical standards and establishing a diesel sales point at an unauthorised location, both of which can attract fines of AED 50,000 under the resolution.
Authorities can also take additional measures depending on the violation. These may include permit revocation, temporary closure, commercial licence revocation, seizure or disposal of non-compliant petroleum products, and vehicle impoundment.
449 LPG inspection campaigns conducted
The DSCE is also strengthening field monitoring through a permanent joint inspection team working with relevant government authorities.
The Council said targeted campaigns are being conducted particularly in the diesel and liquefied petroleum gas (LPG) sectors.
Since the permanent joint field inspection team began operations in July 2022, it has carried out 449 joint inspection campaigns in the LPG sector, according to the latest update.
The inspections are designed to identify unauthorised activities, check compliance with technical requirements and support enforcement action where necessary.
What petroleum businesses should do
Companies operating in Dubai’s petroleum sector should review their compliance procedures and make sure that:
- All required licences and petroleum product permits are valid.
- Storage facilities are authorised and meet technical requirements.
- Transportation vehicles comply with approved standards.
- Petroleum products come from authorised sources.
- Products meet applicable UAE and SCE specifications.
- Inspection and maintenance schedules are properly implemented.
- Emergency response procedures are regularly reviewed.
- Employees receive appropriate safety and operational training.
- Records, invoices and product-source documentation are properly maintained.
- Any incidents are reported according to the applicable requirements.
The official resolution requires establishments to notify the SCE of an incident arising from their activities within 24 hours, in accordance with applicable guidelines and instructions.
Dubai aims to prevent illegal petroleum trading
The stronger monitoring measures reflect Dubai’s broader effort to create a more organised and transparent energy market.
The DSCE says the regulatory framework is intended to curb illicit petroleum trading while protecting lives, property, public health and safety. It also aims to support economic and environmental security and align petroleum activities with international best practices.
For companies, the message is increasingly clear: compliance needs to cover the complete petroleum supply chain, from sourcing and storage to transportation and sale.
As inspections continue, businesses involved in Dubai petroleum products trading are likely to face greater scrutiny over licensing, product sources, storage facilities, transportation methods and safety procedures.
