Recently, Royal Decree 8/2023 was approved, which modifies, among other regulations, Law 34/1998, of October 7, on the hydrocarbons sector. This modification brings with it important changes in the regulation of distributors of petroleum products, particularly for gas stations.
What does the new regulation imply?
The most relevant change introduced by this Royal Decree has to do with the supply between retail distributors. From now on, gas stations, which until now could sell to other distributors, will no longer be able to do so. This change mainly affects the fuel distribution chain in Spain.
Modification of article 43 of Law 34/1998
Section 1 of article 43 of the Hydrocarbons Sector Law has been reformed, establishing a stricter framework regarding who can be considered retail distributors and the activities permitted for them.
The text of the modified article 43 establishes the following:
Retail distributors of petroleum products will be those natural or legal persons who carry out at least one of the following activities:
a) The supply of fuels and fuel to vehicles in facilities enabled for this purpose.
b) Supply to fixed installations for consumption in the installation itself.
c) The supply of kerosene for aviation.
d) The supply of fuel to vessels.
e) Any other supply that is intended for the consumption of these products.
Under no circumstances is supply between retail distributors allowed, nor is the supply from retail distributors to wholesale operators.
How does this affect gas stations?
Gas stations and service stations, which previously could sell fuel to other distributors, will see their commercial operations limited. This implies that they will only be able to sell directly to final consumers and not to other distributors or wholesale operators.
This change has a significant impact on the fuel supply chain, as it eliminates one of the traditional sources of business for gas stations that operated as intermediaries between distributors and final consumers.
Impact for distributors and operators
For retail distributors, this measure means a new commercial reality, as they must adjust to the new restrictions and stop carrying out intermediate operations between distributors. As for wholesale operators, the measure could generate some logistical complications and a readjustment in the supply chain.
On the other hand, the hydrocarbons sector must adapt to this new regulation to guarantee transparency and the correct application of distribution standards. It is likely that gas stations will have to redirect their sales focus and adapt to a new business model focused on final consumers.
How does it affect market competitiveness?
This change could modify the competitive dynamics between the different actors in the sector. By eliminating transactions between gas stations, competition is reduced, and service stations will have to focus their efforts on improving the relationship with the final customer, increasing the quality of service and offering better prices.
Recommendations for gas stations
With these new legislative changes, gas stations must adapt quickly and comply with the stipulated regulations. To do this, it is recommended to:
- Review and adjust their commercial operations to focus more on final consumers.
- Update their contracts and sales conditions to reflect the new legal limits in the distribution of fuels.
- Seek specialized legal advice to ensure that they comply with the new regulations without incurring penalties.
If your gas station is affected by these changes and you need legal guidance on how to adapt to the new regulations, contact us. We can help you understand how this reform affects your business and how to adjust efficiently. As a law firm in Malaga specialized in the hydrocarbons sector, we can help you understand how this reform affects your business and how to adjust efficiently.
