Muscat – The newly issued regulatory regulations outline detailed conditions and controls governing the licensing process for establishing and operating different types of fuel filling stations, including integrated, commercial, private, smart (self-service), marine platform-based, and mobile stations.

Article 1 of the decision mandates the application of the detailed regulations attached to the ministerial resolution. Article Two requires existing fuel filling stations to regularize their status in accordance with the new provisions within one year from the regulation’s entry into force. Article Three formally repeals the older regulations and any conflicting provisions.

Chapter Two of the regulations outlines a new classification system for fuel filling station licenses, categorising them into four types based on the nature of basic, mandatory, and optional services offered, as well as the minimum site area requirements. These categories range from ‘First Class’ integrated stations requiring a minimum of 10,000 square meters and a wide array of services, to ‘Fourth Class’ mobile fuel filling stations.

A significant aspect of the new regulations, detailed in Article 8, addresses the distance requirements between proposed and existing fuel filling stations, setting a minimum of five kilometres in most areas, with specific considerations for Muscat Governorate, Salalah, and Sohar wilayats, where economic feasibility, security, technical, and planning aspects will be taken into account. Integrated fuel filling stations will need to be at least 50 kilometres apart in the same direction. A committee is established to decide on licensing applications that do not meet the distance requirements, based on economic feasibility and regional needs.

The regulations also specify various conditions that proposed fuel station locations must meet, including land ownership or usufruct rights and designated land use. Separate articles detail specific requirements for private, marine platform, overhead, and mobile fuel filling stations.

The licensing process involves submitting applications to marketing companies, which will evaluate economic feasibility before referring them to the Ministry’s Directorate General of Trade. The regulations outline a multi-stage licensing process, including application registration, obtaining approvals from relevant authorities, temporary licenses for establishment, and finally, the operational license. The standard license term is three years, renewable under similar conditions.

Chapter Four outlines the obligations of marketing companies and licensees, covering aspects such as service provision, maintenance, security monitoring systems, electronic payment options, and adherence to safety standards. Specific obligations for self-service stations are also included. The regulations also address procedures for changes in licensee details or station modifications. Notably, the sale of fuel at private fuel stations is prohibited, and strict limitations are placed on selling fuel into portable containers at other stations.

Chapter Five details administrative penalties for violations of the regulations, ranging from written warnings and fines to license suspension and cancellation. Specific fines are outlined for operating without a valid license and for delays in fee payments by marketing companies. Grounds for automatic license cancellation include inactivity for six months without acceptable justification and providing incorrect information. An appeals process is also defined for those subjected to administrative penalties.
Following penalties will be imposed in the event of violating the provisions of these regulations:

1. A written warning obligating the violator to remove the causes of the violation within the period specified by the Directorate.
2. An administrative fine of not less than RO 1,000, and not more than RO 3,000, and the fine shall be doubled in the event of repetition.
3. Suspension of the license until the reasons for the violation are removed.
4. Cancel the license.
5. An administrative fine of RO 500 shall be imposed on the licensee whose license has expired for each month starting from the month following the expiration of the license.
6. An administrative fine of RO 5,000 shall be imposed on the marketing company in the event of delay in paying the fee.
   The license shall be cancelled in the following two cases:
7. Not practicing the licensed activity for a period of six months from the date of obtaining the license without providing an excuse acceptable to the Directorate.
8. Providing incorrect data, documents or information.
   The appendix to the regulations specifies the fees associated with the issuance and renewal of licenses for establishing and operating fuel filling stations.