The Federal National Council (FNC) has approved a draft federal law on the distribution of petroleum products following amendment and introduction of a number of articles and provisions to implement them nationwide, including the free zones, and private investment areas, Wam reported today.
The FNC stressed that the draft law would protect national companies operating in trading of the petroleum products from the competition with unlicensed distributors of the petroleum products. It added that the draft law would also establish a federal database including all parties operating in the petroleum products’ trading sector, with a view to regulate the distribution through combating harmful practices on the national economy, public safety and environment.
Fines starting with Dh500,000 and imprisonment term will be slapped on offenders.
In case of repeated violation, the fine will be Dh5 million.