Opening a gas station in Guatemala requires licenses from the General Directorate of Hydrocarbons (DGH) of the Ministry of Energy and Mines, under the Hydrocarbons Commercialization Law (Decree 109-97) and its regulation (Government Agreement 522-99, as amended by AG 505-2007). This guide summarizes what those two texts say about requirements, location, deadlines, validity, insurance and fines. We read the law in the copy published by the WTO, the regulation in the Legal Ambiental GT copy, and the MEM pages on 8 October 2026.
Quick summary: For a service station you first ask the DGH for a construction authorization and, once the work is finished, for the operating license (Art. 28 of the regulation). The operating license lasts 5 years, renewable (Art. 30 of the law), and renewal must be requested at least 30 days before it expires (Art. 31). Once the file is complete, the law gives the DGH 20 days to decide (Art. 32). Mandatory insurance with cover of at least Q500,000 (Art. 59 of the regulation). Art. 23 of the law allows stations with no distance limit between them, but the regulation bars them within 100 m of authorized schools and of gunpowder and fireworks sellers (Art. 49).
Correction (8 October 2026): an earlier version of this page published figures that do not appear in the law or its regulation. Fixed as follows: the A/B/C categories by number of islands were wrong (the regulation classifies by gallons of storage into A and B); renewal is requested 30 days ahead, not 90; we found no source for the Q50,000-500,000 fines attributed to Art. 73 of Decree 109-83 (the fines for operating or building a station without a license are in Art. 41 of Decree 109-97, in units of Q1,000); the 120-180 day timeline contradicted Art. 32; and the address 24 calle 21-12 zone 12 with PBX 2419-6363 belongs, according to the MEM site, to the General Directorate of Energy, not the DGH. We also removed the Q5,000-15,000 fee, the investment, land, construction, EIA and insurance-premium figures, and the national consumption figures, because we found no source for them.
What the service-station license is
Art. 24 of Decree 109-97 requires service stations to obtain a license to install and operate a deposit of petroleum products for sale to the public, processed before the DGH. Art. 29 also requires a license to build and modify service stations. The regulation orders the process in two steps (Art. 28): a Construction Authorization and, after the work, the Service Station Operating License. Under Art. 26 of the regulation, a station sells at retail to the general public, and the DGH does not authorize stations whose areas are spread over plots separated by other plots, streets, rivers or ravines.
Sector context
- Licensed stations: the DGH list linked from MEM’s Entes de Comercialización page, downloaded on 8 October 2026, has 2,236 entries coded ES (in operation), 273 coded IES (being installed) and 53 coded MES (being modified).
- Prices: Art. 5 of the law says each operator sets its prices freely. Art. 49 lets the Ministry set and publish reference prices when prices are distorted.
- Price display: Art. 64 of the regulation requires signs visible from the access roads, readable at 50 meters, showing full-service and self-service prices and the octane rating of each gasoline.
Requirements
Documents (Art. 24 of Decree 109-97)
Legalized copies of:
- The resolution approving the project environmental impact study, when total storage capacity exceeds 151,400 liters.
- The company’s deed of incorporation and the legal representative’s appointment.
- Business and company commerce patents; for an individual, ID and commerce patent.
- Proof of taxpayer registration.
- Title deed or lease for the station.
- Technical documentation on the installations, per the regulation.
For the earlier steps see Mercantile Registry, NIT and DPI.
Drawings and technical information (Art. 27 of the regulation)
- Forms ALE-01 and ALE-11 for installation; MEM requires current documents uploaded separately as PDF files (installation checklist, consulted 2 November 2026).
- Location plan showing site, access, adjoining properties and buildings within the distance set by Art. 49, ICAITI A2 format, signed, sealed and stamped by an active licensed civil engineer.
- Installation plan with the general layout and areas (administration, sales room, canopy, storage, unloading, dispensing, driveway), ICAITI A1 format, by a civil engineer.
- Technical detail drawings of tanks, piping, receiving, dispensing, equipment and spill collection pits or tanks, by a civil engineer.
- Industrial safety plan (fire and pollution prevention), by an industrial or industrial-mechanical engineer.
- Electrical installation drawings, by an electrical engineer.
Location (Art. 49 of the regulation)
- Not less than one hundred meters from authorized schools and from factories, warehouses or shops selling gunpowder, saltpeter and fireworks, measured from the boundary of the tank area.
- The lot must front a street or avenue with room for vehicles to refuel inside the lot, and dispensers must stand at least three meters from the boundaries facing streets or avenues.
- Distances between tanks, equipment, boundaries and buildings follow ASTM, API, NFPA and other internationally recognized specifications.
Fire prevention (Art. 50 of the regulation)
- One 20-pound ABC dry-chemical extinguisher in each area (tanks, sales room, storeroom and others) and 2 more per 3 dispensing pumps, with the charge checked every 3 months; alternatively, a mobile bank of 10 extinguishers of 10 pounds each.
- At least one water outlet per pump island.
- Bags of dry river sand totaling half a cubic meter at each end of the islands and in the tank area.
- Warning signs (no smoking, turn off your engine and others).
Tanks (Art. 51 of the regulation)
Tanks in a new installation or expansion must be new: double-walled, metal with fiberglass coating, or metal with asphalt-base paint, with the thicknesses set by international standards. The purchase invoice, manufacturing certificate and functionality certificate go with the operating-license application.
Insurance (Art. 59 of the regulation)
The license holder must buy insurance from an insurer operating legally in Guatemala covering damage to third parties, property and the environment, with minimum cover of not less than Q500,000 for a service station (item e.3, amended by AG 505-2007). A legalized copy of the policy goes to the DGH within ten business days of notice of the resolution granting the operating license; otherwise the DGH may withhold or revoke the license. Art. 53 of the law also requires insurance for damage to people, property and the environment.
Step by step
1. Municipal land use
The Hydrocarbons Commercialization Law does not replace municipal permits. Before buying or leasing the lot, ask the municipality whether its land use allows a service station.
2. Business and documents
Art. 46 of the law requires a separate business for each operation in the chain (for example, transport and a service station go in separate businesses) and a fiscal year-end of 30 June.
3. Construction-authorization application
File digitally at servicios.mem.gob.gt: create an account, select the procedure, upload the documents and check the electronic mailbox and email for the result (MEM installation checklist, consulted 2 November 2026). The checklist estimates 29 days, separately from the statutory periods below. Under Art. 28 of the regulation, the Licensing Department has ten business days to review the file, inspect the site and report, and the Directorate another ten business days to decide. If information must be expanded or corrected, Art. 69 gives ten days to do it.
4. Construction
The license to build, expand and modify service stations lasts one year, renewable (Art. 30, item e of the law). Building without a license carries a fine of twenty-five units (Art. 41, item f).
5. Final inspection and operating license
When construction ends, submit ALE-01 and the operating-license documents through servicios.mem.gob.gt; MEM lists tank certificates, calibration tables, photographs, a contingency plan, training schedule and insurance among the requirements, with exclusions for GLP and above-ground tanks where specified. Its operating checklist estimates 29 days (version dated 2 August 2023, consulted 2 November 2026). The Licensing Department has ten business days to inspect and report, and the Directorate another ten business days to grant the operating license or require corrections (Art. 28 of the regulation). Then you have ten business days to deliver the insurance policy (Art. 59).
6. Operation and monthly reports
The holder must file with the DGH, within the first ten days of each month, the previous month’s inventory, purchase and sales volumes and purchase prices on the Directorate’s form; with no activity in the month, it must report that within the same period (Art. 28 BIS of the regulation).
7. Renewal
The operating license lasts five years, renewable (Art. 30, item b of the law). Renewal is requested at least thirty days before expiry, attaching the license (Art. 31 of the law); before renewing, the DGH checks the file and compliance with industrial and environmental safety measures (Art. 65 of the regulation). A license that expires without renewal is extinguished (Art. 66 BIS).
Deadlines and amounts set by the law and the regulation
| Item | What the text says | Legal basis |
|---|---|---|
| Decision on the application | At most 20 days once requirements are met; otherwise deemed approved | Decree 109-97, Art. 32 |
| Construction authorization | 10 business days (review and inspection) + 10 business days (decision) | AG 522-99, Art. 28 |
| Operating license | 10 business days (inspection) + 10 business days (decision) after notice that work is finished | AG 522-99, Art. 28 |
| Construction license validity | 1 year, renewable | Decree 109-97, Art. 30 e) |
| Operating license validity | 5 years, renewable | Decree 109-97, Art. 30 b) |
| Renewal request | At least 30 days before expiry | Decree 109-97, Art. 31 |
| Liability insurance | Cover of not less than Q500,000 | AG 522-99, Art. 59 e.3 |
| Policy delivery | 10 business days after notice of the operating license | AG 522-99, Art. 59 a) |
| Monthly report | Within the first 10 days of each month | AG 522-99, Art. 28 BIS |
| License fee | Q0.00 for installation and operation | MEM checklists, consulted 2 November 2026 |
Fines (Art. 41 of Decree 109-97)
Art. 40 sets the fine unit at Q1,000 and lets the Ministry raise it by ministerial agreement; confirm the current value with the DGH. The quetzal amounts in the table use that Q1,000 value.
| Violation | Fine | Item |
|---|---|---|
| Building a service station without a license | 25 units (Q25,000) | f) |
| Expanding or modifying a station without a license | 5 units (Q5,000) | h) |
| Operating a service station without a license | 10 units (Q10,000) | j) |
| Selling adulterated products at the station | 25 units (Q25,000) | ñ) |
| Selling less than the legal units of measure indicate | 25 units (Q25,000) | o) |
| Not displaying prices, or displayed prices that differ from the pumps | 5 units (Q5,000) | r) |
| Not providing information requested by the DGH | 5 units (Q5,000) | t) |
| Breaching other provisions of the law or regulation | 5 units (Q5,000) | v) |
| Second offence | Double the fine and a three-month license suspension | w) |
| Third offence | Five times the fine and license cancellation | x) |
Sanctions do not exempt from civil and criminal liability (Art. 34). The regulation also bars importers and storage operators from selling fuel to stations without a valid operating license (Art. 53, item a).
Who can apply
Art. 23 of the law lets any individual or legal entity install and operate service stations, and Art. 24 has requirements for both companies and individuals. We found no nationality rule in the text of the law we read. For documents issued abroad see MINEX apostille; for a foreign representative see NIT.
Related Procedures
- Hub MEM — Energy, Mining and Hydrocarbons — all Ministry procedures.
- MEM Hydrocarbons Transport License — for tanker fleets.
- Hydrocarbon Transport Permit — tankers and distribution.
- Register Company at Mercantile Registry.
- Get NIT at SAT.
- Hub MARN — Environmental Licenses.
- Hub SAT — Taxation and Customs.
- Hub MINECO — Mercantile Registry and Commerce.
Official Links
- Ministry of Energy and Mines (MEM): https://mem.gob.gt/
- List of service stations with a valid license (DGH), on the Entes de Comercialización page: https://mem.gob.gt/que-hacemos/hidrocarburos/comercializacion-downstream/entes-de-comercializacion/
- MEM head office: Diagonal 17, 29-78, zona 11 Las Charcas, Guatemala. PBX (+502) 2419-6464 (MEM site, read 8 October 2026).
- Government hub: /mem/
Sources: Decree 109-97, Hydrocarbons Commercialization Law (copy published by the WTO, INFILE compilation); Government Agreement 522-99 with the AG 505-2007 amendments (Legal Ambiental GT copy); MEM pages Área de Hidrocarburos, Comercialización / Downstream and Entes de Comercialización, and the list of licensed service stations linked from the latter. All read on 8 October 2026.