Sunday 04 / May / 2025
Muscat: The Ministry of Commerce, Industry, and Investment Promotion has issued Ministerial Decision No. ( /2025) regarding the regulatory framework governing the conditions and requirements for issuing licenses to establish and operate fuel filling stations.
The decision stipulates that all concerned parties must rectify their status within one year from the date the regulation comes into effect.
It also emphasises that the activity of establishing and operating fuel filling stations may not be carried out without obtaining a license in accordance with the provisions of this regulation.
Furthermore, the decision prohibits the sale of fuel outside the designated site, with the exception of mobile fuel stations.
The Ministry affirmed that coordination is underway with the relevant authorities to identify locations designated for the establishment of integrated fuel stations under usufruct agreements prior to offering them for public bidding, with the requirement that all specified conditions and procedures be met.
The Ministry is also responsible for overseeing and monitoring the activities of licenced marketing companies to ensure compliance with the provisions of the regulation, detect violations, and take the necessary corrective actions.
Requirements for establishing fuel stations
The decision stipulates that the distance between any proposed fuel filling station and an existing, under-construction, or approved station must not be less than five kilometres, whether in the same or opposite direction, if the road is not dual carriageway, and this applies across all governorates and wilayats of the Sultanate of Oman. Exceptions are made for the Governorate of Muscat and the Wilayats of Salalah and Sohar. A feasibility study is required, along with the fulfillment of security, technical, and planning considerations.
Additionally, the decision requires that the distance between two integrated fuel stations must not be less than fifty kilometres in the same direction. However, the committee may grant exceptions to this requirement if justified by economic and technical considerations.
The regulation emphasises that the proposed site must be supported by a title deed, lease agreement, or usufruct right, and must be designated for commercial, mixed-use residential-commercial, tourism, or industrial purposes. This requirement excludes elevated, marine, and mobile fuel stations. The decision further affirms that the establishment of an integrated fuel station under a usufruct agreement is only permitted at locations specifically designated by the Ministry.
Commercial fuel stations
The regulation stipulates that the site area for a commercial fuel station shall not be less than 3,000 square meters, excluding existing stations. Licensing applications for private fuel stations must include details such as the type of fuel, the number of designated vehicles and equipment, and the distance to the nearest existing station. Additionally, applicants must submit a copy of the project agreement or provide clear justifications in the absence of a public or private project.
For marine fuel stations, the regulation requires the submission of a feasibility study along with documentation proving that the site has been allocated by the Ministry of Agricultural, Fisheries and Water Resources for fishing ports or by the Ministry of Transport, Communications and Information Technology for commercial ports.
For above-ground fuel stations, a feasibility study must also be submitted. The site must be designated for commercial or industrial use and located within industrial zones. Additionally, there must be full compliance with standard specifications for fuel transport containers, including tanks, barrels, or designated packaging.
For mobile fuel stations, the regulation requires the submission of a feasibility study and approval from the Civil Defence and Ambulance Authority.
The Ministry clarified that any party wishing to establish and operate a fuel station must submit an application to the licensed fuel marketing company, ensuring that all specified requirements are met. The marketing company evaluates the proposed site and, if the project is deemed economically viable, forwards the request to the relevant department. This department is responsible for registering the application and issuing a preliminary approval form valid for six months, during which all necessary approvals must be completed. If this timeframe or any extension period expires without completion, the application is canceled.
A temporary one-year licence is issued to commence construction upon payment of the required fee. If the project is not completed within that period, the licence is cancelled, and the application cannot be reconsidered for a period of two years.
Terms and conditions
Upon completion of the station’s facilities, the licensed company must notify the relevant department and submit a final approval certificate from the Civil Defence and Ambulance Authority.
The final license will then be issued within thirty days and will be valid for three years, renewable under the same terms and conditions.
The regulation allows applicants whose requests are rejected to file a grievance with the Minister within thirty days of being notified. Failure to respond within this period is considered a rejection of the grievance.
The Ministry emphasised that the license may not be waived without its written approval. Additionally, changing the name of the marketing company requires an official clearance document or a final court judgment.
The Ministry has established a specialised committee, chaired by the Ministry itself and including representatives from the Ministry of Housing and Urban Planning, the Ministry of Energy and Minerals, and the Royal Oman Police. This committee is responsible for reviewing license applications that do not meet the minimum distance requirement. The committee must issue a decision within thirty days, and applicants have the right to file a grievance with the Minister in the event of a rejection.
The regulation also imposes several obligations on licensed marketing companies and operators. These include registering submitted applications, evaluating proposed sites, ensuring the implementation of safety measures in coordination with the Royal Oman Police, providing essential services and electric vehicle charging facilities, maintaining a 24/7 security surveillance system, and complying with approved technical standards. Companies must also ensure staff training and provide inspection access to regulatory authorities.
The Ministry emphasised that fuel sales are strictly limited to vehicle, equipment, and boat fuel tanks. Refuelling into tanks or barrels exceeding 100 liters per vehicle per day is prohibited. All such transactions must be recorded, and monthly reports must be submitted to the relevant department.
Administrative penalties
The regulation outlines several administrative penalties, including a written warning, a fine ranging from OMR1,000 to OMR3,000 with the possibility of doubling in case of repeat violations or suspension or revocation of the licence.
A monthly fine of OMR500 is imposed on those who continue operations after the expiration of their licence. Additionally, a fine of OMR5,000 is levied on a marketing company that delays payment of the annual fee.
The licence will be revoked if the activity is not carried out for a period of six months without a valid excuse, or if false information is provided.
Any party subject to a penalty has the right to submit a grievance to the Minister within sixty days from the date of notification or awareness of the decision. A lack of response within thirty days will be considered a rejection of the grievance.
Improving the business environment
The update of the regulatory framework governing the conditions and requirements for issuing licenses to establish fuel filling stations is one of the key steps taken by the Ministry to improve the business environment and regulate the sector.
The primary objective of this update is to establish a comprehensive regulatory framework that clearly defines the conditions and requirements for the establishment and operation of all types of fuel filling stations. This includes stations that provide gasoline and diesel services, as well as those offering alternative fuels such as natural gas or hydrogen.
The Ministry continuously reviews these conditions to ensure alignment with modern technical standards, including environmental and safety requirements, in order to provide the highest levels of protection for both citizens and station workers.
Enhancing institutional integration
The updated regulation also aims to strengthen coordination among key stakeholders, such as the Civil Defence Authority, the Environment Authority, and the Ambulance Authority, to ensure effective implementation of the regulations. The Ministry seeks to encourage investment in this vital sector by creating a regulatory environment that supports the expansion of fuel stations and offers investors well-considered opportunities within a fair legal framework that ensures competitiveness.
One of the main goals of these updates is to enhance the quality of services provided at fuel stations. This includes the addition of user-friendly amenities such as ATMs, maintenance centers, restaurants, mosques, and dedicated services for people with disabilities. The new regulations will also introduce mandatory licensing requirements, including clearly defined criteria for station size, geographic location, and the range of services to be provided.
Technical and safety requirements
The regulation will also include stringent technical and safety requirements aimed at upholding public safety standards and protecting the environment. These requirements will be established in coordination with relevant authorities such as the Civil Defence Authority and the Environment Authority, to ensure alignment with international standards in this field. Furthermore, the regulation will promote the adoption of modern technologies at fuel stations, including the provision of electric vehicle charging points and hydrogen refueling stations. It will also emphasise the use of solar energy as part of sustainable energy solutions for power generation at fuel stations.
The regulation will also work towards improving market organisation by allocating fuel station sites under usufruct agreements based on precise and transparent criteria, including organising bidding processes to select the most suitable locations. This step aims to increase investment opportunities and provide a favorable environment for both local and international investors in the sector.
These updates will include a transitional period that allows existing station owners sufficient time to adjust their operations in accordance with the new requirements, ensuring business continuity and easy adaptation to the updated standards. Existing stations will also receive support from the Ministry to facilitate the transition in line with the new safety and quality standards.
