New Fuel Station Regulations Issued in Oman: Licensing and Operation Tied to Strict New Conditions

In a significant regulatory move aimed at modernizing Oman’s fuel distribution sector and attracting strategic investments, the Ministry of Commerce, Industry and Investment Promotion has announced a comprehensive new ministerial decision governing the establishment and operation of fuel filling stations across the Sultanate.

Licensing Becomes Mandatory Under New Framework

Under the new regulation, no entity is permitted to establish or operate a fuel station without obtaining a license that complies fully with the provisions of the updated framework. Existing operators must regularize their status within one year of the regulation coming into effect.

Off-site Fuel Sales Banned — Except for Mobile Stations

The regulation prohibits all off-site fuel sales except those explicitly authorized for mobile fuel stations, thereby reinforcing operational control and safety standards.

Strategic Distance Requirements Between Stations

• A minimum distance of 5 kilometers between any new and existing stations on non-dual carriageway roads is required, applicable across all governorates.
• For integrated stations, the distance extends to 50 kilometers.
• Exceptions may be granted for Muscat, Salalah, and Sohar, subject to committee review.

Land Use and Ownership Conditions

Applicants must present a title deed, lease, or usufruct agreement. The land must be zoned for commercial, mixed-use, tourism, or industrial use. Specific rules apply to above-ground, marine, and mobile stations.

Step-by-Step Licensing Procedure

1. Submit application to a licensed fuel marketing company.
2. If economically viable, the marketing company forwards it to MoCIIP.
3. A 6-month preliminary approval is granted, during which final clearances must be secured.
4. A temporary construction license (valid for one year) is then issued.
5. Upon completion and safety approval, a three-year renewable operating license is issued.

Mandatory Technical & Safety Compliance

• Feasibility studies are mandatory for all station types.
• Compliance with Civil Defence and safety regulations is required.
• Stations must install 24/7 surveillance, EV charging stations, and services for persons with disabilities.
• Solar and hydrogen integration is encouraged to meet sustainability goals.

Penalties & Enforcement

• Fines range from OMR 1,000 to 3,000 for violations.
• Late license renewals incur a monthly fine of OMR 500.
• OMR 5,000 fine for delayed annual payments by marketing companies.
• Licenses may be revoked for inactivity or submission of false information.

A Competitive Framework for Investors

The regulation is a direct attempt to enhance transparency, improve service quality, and create attractive entry points for local and international investors. Requirements also cover value-added services including ATMs, restaurants, auto repair, and mosques.

Institutional Coordination for Effective Execution

A dedicated inter-ministerial committee—comprising MoCIIP, Ministry of Housing & Urban Planning, Ministry of Energy & Minerals, and the Royal Oman Police—will oversee exception approvals and ensure proper implementation.

Oman’s new regulatory framework unlocks robust investment opportunities in the fuel retail sector, aligning with the country’s economic diversification agenda. The new rules promise higher safety, better consumer service, and a modernized infrastructure outlook for future-ready energy distribution.