Shoura to fine-tune law on trade in petroleum
The Shoura Council is slated to discuss a draft law on trade in oil and petroleum products sent to it by the Council of Ministers.
An official said that some time will be needed to deliberate over the draft and write down notes to amend, cancel or make any additions to articles laid down in the draft prior to returning it to the council for approval.
The articles in the draft define commercial activities related to the prices of petrol derivatives and other petroleum products, including its sale, transportation, storage, distribution, use and export. The articles deal with violations and penalties and identify government authorities responsible for implementing the law and monitoring its implementation.
The draft law prohibits practicing any commercial activity related to the prices of petroleum products, including their sale, transportation, distribution, usage and export, unless it conforms to laws governing the petroleum trade.
Violations are defined as sale, transportation, distribution, usage and export of petroleum products without a permit or misusing petrol products, or offering incomplete or wrong or misleading information about the nature of any of these products.
Financial penalties shouldn’t be more than 20 times the international price for products related to the violation, or imprisonment for a maximum period of 10 years or both, in addition to confiscating the goods and transportation means, or profits if any gained through the violation.
The draft law prevents the practice of any commercial activity for a period of no more than 10 years and cancellation of the commercial register or permits related to petroleum products, and preventing the signing of deals related to petroleum products.
The penalty for those who commit the stated violations should be not less than half of the maximum penalty if the violation is committed through an organized criminal cell, or if the violator misused his government position to carry out the violation.
The Ministry of Petroleum and Mineral Resources will be main body responsible for the implementation of the law with the help of Ministries of Interior, Finance, Commerce and Industry, Municipal and Rural Affairs, Water and Electricity, Economy and Planning, and the Saudi Standards, Metrology and Quality Org, the General Presidency for Meteorology and Environment Protection.