The Ministry of Energy has recently unveiled a comprehensive set of penalties for violations under the Distribution Law governing both dry gas and liquified petroleum gas (LPG) for residential and commercial purposes. This includes a maximum fine of SR5 million for individuals or entities found in breach of the law's provisions.
The draft table of violations encompasses breaches of the law, its executive regulations, activity regulations, service guidelines for distributing and selling LPG, and the terms and conditions of licenses. Violators may face financial penalties, suspension of activities for up to one year, or license cancellation.
1. Financial Penalties: The law outlines fines not exceeding SR5 million for violations, with a provision for additional daily fines (up to 10% of the original violation amount) until rectification.
2. Repeat Offenses: If a violation is repeated within three years, the fine is doubled. Violators must also return gains from the violation to rightful owners.
3. Publication of Violations: A summary of punitive measures will be published at the violator's expense in a local newspaper after the decision becomes final.
4. Penalty Classification: Violations are categorized as high, medium, or low, with penalties determined based on factors such as violation severity, geographical location, firm size, and total revenues during the preceding fiscal year.
5. Major Violations: Serious offenses include engaging in gas transportation without a valid license, with fines ranging from SR250,000 to SR5 million.
6. Grave Violations: Licensees may face penalties for failing to enable temporary management, taking unauthorized actions, or neglecting to disburse approved wages.
