Energy Authority Mandates Contractual Clearance for Fuel Stations Switching Suppliers

The Petroleum and Energy Authority has mandated that fuel stations must obtain contractual clearance from their current distributors before they can switch to new suppliers. This directive, effective immediately as of October 21, 2026, aims to regulate the fuel retail market by enforcing dealership agreements.

The Authority clarified that it will no longer process switching applications without proof of clearance or evidence of contractual violations by current distributors. This move follows numerous complaints from station operators regarding supply interruptions and the refusal of distributors to grant termination documentation. The regulator emphasized that operators must resolve disputes within the terms of their contracts before seeking regulatory intervention.