Muscat – In a move to enhance governance and operational standards in the fuel distribution sector, Ministry of Commerce, Industry and Investment Promotion has introduced a comprehensive regulatory framework for licensing of fuel stations across the sultanate.

Ministerial Decision No 142/2025, issued by H E Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion, came into effect on May 4 replacing all previous licensing regulations and directing fuel stations to regularise their status within one year.

The regulation outlines detailed requirements for establishing and operating various station types – including integrated, commercial, private, mobile, self-service and marine-based facilities.

A central feature of the new rules is a four-tier classification system based on land area and range of services. First Class stations must occupy at least 10,000sqm and provide comprehensive services, while Fourth Class refers to mobile units. Each category has its own technical specifications and service requirements detailed in the regulation.

To prevent market saturation and ensure sustainable growth, the regulation mandates minimum distance buffers between stations. Article 8 specifies that new stations must be at least 5km apart from existing ones, while integrated stations must be spaced at least 50km apart. In urban areas such as Muscat, Salalah and Suhar, additional factors including feasibility, security and municipal planning will influence approvals.

Licensing will be processed through authorised marketing companies, which are now responsible for conducting feasibility studies before submitting applications to the Directorate General of Trade. The approval process includes initial clearances, temporary licensing and final operational licences – valid for three years and renewable.

Violations will attract penalties ranging from written warnings to fines between RO1,000 and RO3,000, with amounts doubling for repeat offences. Operating a station with an expired licence will incur a RO500 monthly fine, while marketing firms delaying fee payments will be fined RO5,000.

Licences will be automatically cancelled if a station remains inactive for more than six months without justification or if false information was provided during the licensing process. The regulation also establishes an appeals mechanism for those affected by administrative decisions.