The National Congress is currently debating the Draft Framework Law for the Regulation of the Marketing Chain for Hydrocarbons, Biofuels, and Their Blends, an initiative that seeks to establish a comprehensive system of control, supervision, and monitoring for activities related to this chain in the country.
If approved, the law would have a direct impact on importers, storage terminals, wholesale distributors, resellers, service stations, LPG filling plants, companies with on-site consumption facilities, transporters, and providers of services related to the marketing chain. The authority responsible for regulating, supervising, and enforcing the law would be the General Directorate of Hydrocarbons and Biofuels (DGHB), attached to the Ministry of Energy. The bill also provides for the repeal of the decree that created the Petroleum Administrative Commission (CAP), meaning that the DGHB would assume the regulatory and supervisory functions currently exercised by that entity.
One of the most significant aspects of the bill is the creation of a mandatory system of registrations, permits, and licenses. Permits would be intended for specific or temporary activities, such as construction, expansions, temporary imports, exports, re-exports, temporary closures of operations, and, in certain cases provided for by law, marketing activities requiring express authorization from the competent authority. The validity of permits would vary depending on their nature and the specific provisions set forth in the law and its regulations. Licenses, on the other hand, would allow for the permanent operation of the various regulated business modalities and would be valid for a period of three to seven years, subject to renewal.
To obtain permits and licenses, applicants would be required to meet legal, tax, municipal, technical, and safety requirements. The regulations would establish specific requirements for each type of operation.
The bill also establishes obligations for Operating Agents in the marketing chain, including the provision of information to the DGHB, the maintenance of quality and safety standards, the traceability of marketed products, the exclusive contracting of authorized suppliers, and the prior obtaining of permits for modifications or expansions of facilities. Furthermore, certain activities are prohibited, such as the sale of fuels from facilities authorized solely for private consumption and the operation of mobile service stations or portable mini-gas stations intended for retail sale.
Regarding enforcement, the DGHB would have broad powers to inspect, monitor, and impose sanctions. Violations would be classified as minor, less serious, and serious, taking into account factors such as the risk posed, repeat offenses, and the impact on supply, industrial safety, the environment, and consumer protection. Penalties could include fines, suspension, or revocation of authorizations, without prejudice to any civil or criminal liabilities.
The initiative represents one of the most significant regulatory changes for the Honduran hydrocarbons market in recent years and, if approved, will require industry participants to review their operational structures, compliance frameworks, and authorization processes to align with the new legal framework.
