The Law of Trade in Petroleum Products is a law that regulates commercial activities related to the trade of petroleum products in the Kingdom of Saudi Arabia, including their usage, sale, transport, storage, distribution, import, and export. This law was established by Royal Decree on October 18, 2017.
Definitions in the Law of Trade in Petroleum Products
The Law of Trade in Petroleum Products defines petroleum products as crude oil and its derivatives, including aviation fuel, kerosene, gasoline, diesel, fuel oil, and asphalt. According to the law, the feedstock is a petroleum product used as input in the industrial process and a component of the finished product, excluding gas supplies and pricing.
The Law of Trade in Petroleum Products stipulates that petroleum products priced by the state may be used only as fuel in the burning process, including means of transport, industry, and the like, as specified by the regulations. The use of petroleum products as feedstock must be at the international price.
Import and export in the Law of Trade in Petroleum Products
The Law of Trade in Petroleum Products stipulates that petroleum products or substances containing petroleum products, whether priced or unpriced, may not be exported or imported without the ministry’s approval. The regulations specify the substances that could be exported or imported.
Penalties in the Law of Trade in Petroleum Products
A person who commits any of the violations provided for in this law, except for the violation provided for in Article Thirteen of this law, is punished by one or more of the following penalties: Revocation of permit; denial of a permit for a period not exceeding three years; suspension of supply contracts for a period not exceeding three years; or payment of a fine not exceeding double the value of the petroleum product subject of the violation at the international price. The penalty may be doubled if the violation is repeated.
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