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Riskdecision Immediate

Decision No. 32 of 2025 on Fuel Distribution Provisions

27-01-2025·رئيس مجلس الوزراء·الطاقة
Analysis
Summary

The Prime Minister centralized all fuel station licensing authority exclusively with the National Oil Corporation (NOC), acting on proposals from Brega Petroleum Marketing Company. Municipalities must now coordinate with security directorates to inventory operating versus non-operating stations every three months, with fuel supplies restricted to certified operational facilities only.

Business Implication

This decision restricts market entry and consolidates NOC's gatekeeping role in downstream fuel retail. Foreign fuel retailers, service station developers, or investors in petroleum distribution infrastructure face heightened barriers, as NOC/Brega now control all licensing without transparent criteria. Existing operators must ensure municipal and security certification every quarter to maintain fuel access, creating compliance friction and potential supply disruption risk if relationships with local authorities deteriorate.

Key Provisions
NOC holds exclusive authority to authorize fuel distribution station establishment, based on Brega Petroleum Marketing Company proposals
Municipalities must coordinate with Security Directorates and Municipal Guard to certify operating versus non-operating stations quarterly
Fuel distribution companies may only supply stations appearing on certified schedules; certifying entities bear legal responsibility for accuracy
Certification process must be renewed every three months
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