‎Here’s what or no longer it’s a must wish to clutch about amendments to dry gasoline, LPG distribution legislation


The Saudi Cupboard licensed in June the amendments to legislation of dry gasoline and liquid petroleum gasoline (LPG) distribution for residential and industrial applications.

The authentic gazette, Umm Al Qura, published the amendments, along side the following:

First: Amending Article (1) to read as follows:

The next phrases and phrases – wherever they are in this legislation – shall possess the meanings acknowledged next to every of them, except the context requires otherwise:

Ministry: The Ministry of Energy

Minister: The Minister of Energy

Executive Rules: The govt. rules for this legislation

Rules: The technical and procedural rules to boot to guidelines issued by the ministry and referred to in Article (7) of this legislation.

Dry gasoline: It consists mainly of methane, and may maybe perhaps restful consist of some ethane and small amounts of heavier hydrocarbon compounds and others.

Liquid petroleum gasoline (LPG): Hydrocarbon merchandise, along side a mixture of propane and butane, sold one by one or as a mixture, as a gasoline or as a feedstock.

Different pure gasoline: Fuel produced by mixing LPG with air, and the combination is corresponding to the combustion properties of dry gasoline.

Dry gasoline distribution network: A network that starts from the doorway to the indispensable stress-cutting again location, and receives dry gasoline from a pipeline that transports it under high stress and delivers it to user meters.

Self passable gasoline distribution network: An neutral distribution network that receives LPG, different pure gasoline, or dry gasoline from tanks and any other associated facilities, and delivers it to the patrons’ meters.

LPG distribution: Distribution of LPG thru pipelines, tanks or cylinders from LPG facilities and promoting it without extend to at least one more licensee or to the user.

LPG facilities: They consist of LPG tanks and pipelines, filling stations, storage yards, gasoline handling systems, and their accessories.

Substances of the project: The facets of the project talked about in Article (4) of the legislation.

License: Permission granted to develop any of the activities under the provisions of this Law, Executive Rules and Bylaws.

Person: A pure or apt person.

Licensee: The person that obtained the license.

Retailer: The licensee to sell liquid petroleum gasoline cylinders in retail locations.

Residential Person: Somebody whose position is supplied with dry gasoline, LPG, LPG cylinders, or different pure gasoline for residential applications.

Commercial Person: Somebody whose industrial institution offers dry gasoline, LPG, LPG cylinders, or different pure gasoline for industrial applications.

Person: The residential or industrial user.

Tariff: The monetary consideration paid by the user to the licensee, along side operational costs, capital costs and profit margin, to boot to the licensed gasoline tag.


Second: Along side the phrase “and different pure gasoline” to the close of Paragraph (3) of Article (2) to read as follows:


3- Encouraging funding in all facets of project, thru developing a aggressive atmosphere that achieves a exquisite financial return and can increase the alternatives for patrons in the many regions of the Kingdom to build dry gasoline, LPG and different pure gasoline companies and products.


Third: Amending Article (3) to read as follows:


With out prejudice to the competencies and responsibilities of alternative connected authorities, the ministry – in tell to place in force the provisions of this Law – shall buy all powers and initiatives connected to regulating the facets of project self-discipline to this Law.


Fourth: Amending Article (4) to read as follows:


The facets of the project self-discipline to this Law are:


1- Setting up, developing, operating or affirming a dry gasoline distribution network or an neutral gasoline distribution network, to boot to linking residential and industrial facilities thereto, and providing the user with dry gasoline, LPG or different pure gasoline.


2- Transporting LPG from its sources to LPG facilities or an neutral gasoline distribution network.


3- Setting up, developing, operating or affirming LPG filling and storage facilities.


4- Wholesale distribution of LPG.


5- Retail sale of LPG cylinders in locations designated for this aim.


Fifth: Amending Article (7) as follows:


1- Amending the preamble of the Article to read as follows: “With out prejudice to the competencies of alternative our bodies, the ministry shall specify in the rules what ensures the success of the general public hobby, along side the following: ….”


2- Amending Paragraph (1) to read as follows: “Rules for organizing the facets of project.”


3- Amending Paragraph (2) to read as follows: “Requirements for issuing, amending, renewing and transferring licenses.”


4- Changing the note “for patrons” in preference to the note “for others” talked about in Paragraph (8).


5- Along side the following paragraphs:


9 – The relationship between the licensee and the source of gasoline provide.


10- The procedures and standards mandatory to remark the provision of companies and products provided to the user and the protection of his rights, along side his apt to build high of the vary and effectivity companies and products from licensees, at cheap, aggressive costs, to boot to the procedures for dealing with complaints.


11- The controls and procedures that retain watch over the audit and inspection work for all facets of the project.


12- The mandatory measures to reduction the national industry supporting the facets of the project, and to carry the native teach with its varied system, along side jobs, companies and products, manufacturing and expertise.


13- The measures mandatory to confront monopolistic practices, fetch a suitable atmosphere for exquisite competitors, to boot to arrangement and help investments in all facets of project, along side prohibiting the licensee from entering into any agreement or making any association or practices that can bog down or limit competitors.


14- The procedures and controls that make certain the stable provide of dry gasoline and LPG.