For the purposes of this regulation, the following terms and phrases shall have the meanings assigned to each of them unless the context requires otherwise:

1- 1 "Law": Law of Trade in Petroleum Products.

1- 2 "Regulation": Implementing Regulation of the Law.

1- 3 "Ministry": Ministry of Energy, Industry, and Mineral Resources.

1- 4 "Minister": Minister of Energy, Industry, and Mineral Resources.

1- 5 "Person": Natural or legal personality.

1- 6 "Commercial Activity": All aspects of commercial practices related to petroleum products or materials containing petroleum products, including use, sale, purchase, transfer, storage, distribution, import, and export.

1- 7 "Petroleum Products": Crude oil and its derivatives, including but not limited to the following products in all their grades:

• A. Crude oil, bitumen, tar oils, and condensates, whether processed or unprocessed.

• B. Naphtha.

• C. Jet fuel.

• D. Kerosene.

• E. Gasoline.

• F. Diesel.

• G. Fuel oil.

• H. Asphalt.

• I. Primary or secondary petroleum products resulting from refining, processing, or manufacturing operations.

• J. Heavy petroleum products remaining after various distillation processes and any other processes resulting from crude oil refining operations.

• K. Condensates.

• L. Residues of petroleum products resulting from manufacturing, maintenance, operation, and cleaning processes, including used or consumed petroleum products.

1- 8 "State": Kingdom of Saudi Arabia.

1- 9 "Government": Government of the Kingdom of Saudi Arabia.

1- 10 "Priced Petroleum Products": Petroleum products for which the government has set a sale price within the Kingdom.

1- 11 "Feedstock": The petroleum product used as an input in industrial operations, becoming part of the final product components, excluding gas feedstock supplies and pricing.

1- 12 "Distributor": A person who engages in the activity of purchasing and selling petroleum products, in addition to any other commercial activity such as transfer and storage if required, either by himself or through others.

1- 13 "Materials Containing Petroleum Products": Products or materials containing more than five percent (5%) of petroleum products, or any other percentage determined by regulatory procedures.

1- 14 "Enforcement Officers": Employees responsible for detecting violations mentioned in the law and specified in Article (Nine) of the law.

1- 15 "Committee": Committee for Reviewing Violations of the Provisions of the Law formed according to (Article Twelve) of the law.

1- 16 "Company": The company granted a concession by the state in the field of petroleum products.

1- 17 "Regulatory Procedures": Provisions, rules, regulations, instructions, standards, and detailed technical requirements determined by the ministry to regulate commercial activity according to the provisions of the law and regulation.

1- 18 "Authorization": Granting a person the right to export or import petroleum products or materials containing priced or unpriced petroleum products by the government.

1- 19 "License": Granting a person the right to engage in commercial activity according to certain conditions and procedures determined by the ministry according to the provisions of the regulation and regulatory procedures.

1- 20 "Global Price": The sale price of petroleum products announced by the ministry from time to time.

2- 1 The provisions of the regulation apply to all aspects of commercial activity related to the trade of petroleum products in the Kingdom of Saudi Arabia.

2- 2 The Ministry is responsible for setting and issuing the regulatory procedures in accordance with the law and the regulation, and updating them as needed by a decision from the Minister.

3- 1 Every person engaged in commercial activity with petroleum products must do the following:

• A- Register the commercial activity data with the Ministry and update this data whenever necessary as determined by the regulatory procedures.

• B- Obtain the necessary permit or license from the Ministry to engage in commercial activity as determined by the regulation and regulatory procedures.

• C- Submit periodic reports to the Ministry and retain documents related to the commercial activity for the period specified in the regulation and regulatory procedures. In the event of any contest or dispute related to petroleum products in a specific commercial activity, the retention period for the related documents is extended for another period after the resolution of the contest or dispute as determined by the regulation and regulatory procedures.

3- 2 The person engaged in commercial activity with petroleum products bears responsibility for any damages and losses of any kind resulting from engaging in the commercial activity, in violation of the law and regulation or any other laws.

4- 1 Without prejudice to the provisions of paragraph (4- 2), priced petroleum products may only be used as fuel in combustion operations within the Kingdom, whether in transportation, industry, or others such as bakeries and laundries, or as determined by regulatory procedures.

4- 2 Priced petroleum products may not be used as fuel in combustion operations for commercial purposes, such as the commercial production of electricity and cement, and others as determined by regulatory procedures, except after obtaining a license from the Ministry.

4- 3 Petroleum products may not be used as feedstock in any manufacturing operations except at the global price, and after obtaining a license from the Ministry as determined by regulatory procedures.

5- 1 Petroleum products are sold by the company and licensed fuel stations.

5- 2 Subject to paragraph (5- 1) above, every person must obtain a license from the Ministry before engaging in the sale of petroleum products, as determined by the regulatory procedures.

5- 3 A petroleum product sales contract must include an explicit provision stating the purpose of purchasing that product and the applicable price, in compliance with the Law and the provisions of Article (Fourth) of the Regulation.

5- 4 The seller and buyer are obligated to prepare monthly reports detailing all petroleum product sales and purchases. These reports must be kept in their records for no less than ten (10) years and submitted to the Ministry upon request.