# Business Regulation (GBR)

## Title 10. Motor Fuel and Lubricants

### Subtitle 3. Inspection and Sale of Motor Fuel

#### Section 10-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Below cost" means a price that is less than the total of:

  (1) the most recently published average reseller rack cost of motor fuel by grade and quality, as calculated by the Oil Price Information Service (OPIS), for the particular terminal from which the motor fuel was delivered to the retail service station dealer, or the actual invoice cost from the supplier of the product, whichever is lower; and

  (2) the freight charges and all applicable federal, State, and local taxes not included in the invoice cost.

(c)

  (1) "Dealer" means a person who:

    (i) imports any gasoline into the State;

    (ii) blends, in the State, any gasoline on which the motor fuel tax has not been paid;

    (iii) refines, in the State, any gasoline on which the motor fuel tax has not been paid; or

    (iv) acquires, in the State, any gasoline on which the motor fuel tax has not been paid, for:

      (1) export; or

      (2) wholesale distribution.

  (2) "Dealer" includes:

    (i) the State when it engages in any activities listed in paragraph (1) of this subsection; and

    (ii) a political subdivision of the State when it engages in any of the activities listed in paragraph (1) of this subsection.

  (3) "Dealer" does not include a person who brings gasoline into the State in the fuel supply tank of an aircraft, motor vehicle, or vessel.

(d) "Manufacturer" means a person who in the State blends gasoline from blend stocks before final sale.

(e) "Special fuel seller" has the meaning stated in Sec. 9-301(s) of the Tax - General Article.

#### Section 10-302

(a) All motor fuel stored or offered for sale in the State is subject to inspection and analysis as provided in this title.

(b) The analysis shall be made by a testing method approved by the Comptroller.

#### Section 10-303

(a) Before storing or selling motor fuel in the State, a person or governmental unit shall register with the Comptroller.

(b) A separate registration is required for each location where a person or governmental unit stores or sells motor fuel.

(c) An applicant for registration shall submit to the Comptroller in the form that the Comptroller requires:

  (1) a statement that the applicant intends to store or sell motor fuel in the State;

  (2) a statement that the motor fuel, as supplied or bought from the supplier, conforms to the specifications set by the Comptroller;

  (3) the brand, type, and grade of the motor fuel to be stored or sold;

  (4) the name and address of the supplier;

  (5) if applicable, the number of retail nozzles by type of motor fuel;

  (6) the legal business name and federal identification number of the applicant; and

  (7) the address of the location where the motor fuel will be stored or sold.

(d)

  (1) The Comptroller shall issue a certificate of registration to each applicant who meets the requirements of this section.

  (2) The Comptroller shall set the form of the certificate of registration.

(e) Registration expires on the first May 31 after its effective date.

(f) Each registrant shall display the certificate of registration conspicuously in each location where the registrant stores or sells motor fuel.

(g) A certificate of registration issued under this title is not transferable.

(h) The Comptroller may waive this section only when consumers in the State otherwise would be subject to extreme hardship during an emergency or civil disturbance.

#### Section 10-304

(a) The Comptroller may not issue a certificate of registration to a retail service station dealer who markets motor fuel through a retail service station altered, enlarged, or structurally modified after July 1, 1977, unless:

  (1) the station contains an enclosed work area where the service of motor vehicles is offered to customers regardless of whether motor fuel is bought; and

  (2) the services offered include a battery charge, lubrication, oil change, tire repair, and replacement of accessories such as fan belts, radiator hoses, or wiper blades.

(b) Notwithstanding subsection (a) of this section, the Comptroller may issue a certificate of registration to a retail service station dealer who markets motor fuel through:

  (1) a retail service station that, before it is altered, enlarged, or structurally modified, lacks an enclosed work area; or

  (2) a retail service station that is altered, enlarged, or structurally modified if the owner and retail service station dealer agree to the elimination of an enclosed work area.

#### Section 10-304.1

(a) Except as provided in subsection (b) of this section, a retail service station dealer may not sell motor fuel below cost.

(b) A retail service station dealer may sell motor fuel below cost if the sale is:

  (1) made in good faith to meet competition;

  (2) made as part of a final liquidation or closing of the business of the retail service station dealer;

  (3) made as part of a bona fide charitable promotion lasting no longer than 2 days; or

  (4) made under the direction or order of a court or government entity.

(c) If the Comptroller receives a complaint in writing that a retail service station dealer is selling motor fuel below cost, the Comptroller shall investigate and determine within 3 business days of the receipt of the complaint whether the allegations contained in the complaint are true.

(d) The Comptroller shall issue a stop sale notice and may suspend or revoke the certificate of registration of a retail service station dealer if the Comptroller determines that the retail service station dealer is in violation of this section.

#### Section 10-305

(a)

  (1) Each dealer, manufacturer, refiner, or special fuel seller who imports motor fuel into the State shall submit to the Comptroller refinery specifications, including additive specifications, without regard to where the additives become part of the motor fuel.

  (2) The Comptroller may waive this section only when consumers in the State otherwise would be subject to extreme hardship during an emergency or civil disturbance.

(b)

  (1) When submitting refinery specifications, a dealer, manufacturer, refiner, or special fuel seller, with the approval of the Comptroller, may designate 1 or more components of the motor fuel, including an additive, as a trade secret.

  (2) In determining whether a component is a trade secret, the Comptroller shall consider whether a chemist who uses modern analytical techniques reasonably could be expected to identify the component.

  (3) The Comptroller shall make every reasonable effort to protect the trade secret.

#### Section 10-306

(a) Before selling motor fuel, each dealer, manufacturer, refiner, special fuel seller, or person operating a facility where motor fuel is stored in bulk for further distribution shall submit to the Comptroller for approval each terminal agreement, each additive specification, and each refinery specification.

(b) Before selling motor fuel, each dealer, manufacturer, or refiner shall submit to the Comptroller for approval each exchange agreement, each additive specification, and each refinery specification.

(c) The Comptroller may waive this section only when consumers in the State otherwise would be subject to extreme hardship during an emergency or civil disturbance.

#### Section 10-307

An employee of the Office of the Comptroller may not divulge an additive specification or a refinery specification.

#### Section 10-308

(a) Before making the first sale in the State of gasoline imported into the State, the seller shall register with the Comptroller each additive introduced into the gasoline after it was received in the State.

(b) The registration shall:

  (1) include the amount of additive blended into each gallon of gasoline; and

  (2) describe the additive by including:

    (i) its trade name, trademark, and manufacturer;

    (ii) its quantitative analysis; and

    (iii) the manufacturer's trade name or other identification.

(c)

  (1) An additive may be introduced into gasoline for resale or distribution by a person who holds a Class "A" dealer license issued in accordance with Sec. 9-322 of the Tax - General Article.

  (2) The Comptroller may authorize any person who holds a dealer license other than a Class "A" dealer license issued in accordance with Sec. 9-322 of the Tax - General Article to introduce an additive into gasoline for resale or distribution if the person complies with:

    (i) the requirements of this subtitle; and

    (ii) regulations adopted by the Comptroller, including regulations:

      (1) that specify the method for introducing an additive into gasoline, such as in-line blending or any method equal to or superior to in-line blending, as determined by the Comptroller; and

      (2) that provide for the payment of the motor fuel excise tax under Sec. 9-305 of the Tax - General Article by a licensed dealer.

#### Section 10-309

(a) Before making the first sale in the State of special fuel imported into the State, the seller shall register with the Comptroller each additive introduced into the special fuel after it was received in the State.

(b) The registration shall:

  (1) include the specific amount of additive blended into special fuel; and

  (2) describe the additive by including:

    (i) its trade name or trademark;

    (ii) its quantitative analysis; and

    (iii) the manufacturer's trade name or other identification.

(c) An additive may only be introduced into special fuel for resale or distribution:

  (1) by a special fuel seller; and

  (2) in a manner set by regulation of the Comptroller.

#### Section 10-310

(a) Before making the first sale in the State of a fluid, material, or other item, in a prepackaged form, imported into the State that purports to be a substitute for or improver of motor fuel, the seller shall:

  (1) submit the item to the Comptroller for inspection;

  (2) label the item in a way that the Comptroller approves; and

  (3) obtain authorization for the sale from the Comptroller.

(b) In addition to any other information that the Comptroller requires, the seller shall submit to the Comptroller:

  (1) the trade name, trademark, manufacturer, and place of manufacture of the item;

  (2) a quantitative analysis of the item;

  (3) a copy of any patent for the item;

  (4) proof of all claims made for the item;

  (5) instructions for use, including dosage;

  (6) an amount of the item sufficient to be analyzed; and

  (7) the results of each applicable SAE or ASTM test made on the item.

(c) If a material change is made in an item authorized for sale under this section, the item shall be resubmitted to the Comptroller for authorization.

(d) The Comptroller shall order the removal from the State of an unauthorized item offered for sale.

#### Section 10-311

(a) Except as provided in subsections (c) and (d) of this section, each retail service station in the State:

  (1) shall be operated by a retail service station dealer; and

  (2) may not be operated by a producer or refiner of motor fuel:

    (i) with a commissioned agent, company personnel, or a subsidiary company; or

    (ii) under a contract with a person who manages the station on a fee arrangement with the producer or refiner.

(b) This section does not apply to facilities that an agricultural cooperative association owns and operates if:

  (1) the agricultural cooperative association is certified by a bank for cooperatives to be eligible to borrow from the bank under Subchapter III of the federal Farm Credit Act of 1971;

  (2) the certification is submitted to the Comptroller with the application for registration of a retail service station dealer under this subtitle;

  (3) the agricultural cooperative association owns the property on which the facilities are located; and

  (4) on the property, the agricultural cooperative association, as part of its business, sells or provides farm supplies or farm business services or distributes motor fuel in bulk to farmers on farms.

(c) A retail service station shall be exempt from subsection (a) of this section for a fiscal year that starts July 1, if:

  (1) on January 1, 1979, the station was operated by a subsidiary of a producer or refiner of motor fuel; and

  (2) the gross revenues of the subsidiary from the sale of motor fuel in the State for the preceding calendar year is less than 2% of the gross revenues of the subsidiary from all retail operations in the State for the preceding calendar year.

(d) If a dealer has previously operated a retail service station, the Comptroller may adopt regulations that define the circumstances in which a producer or refiner temporarily may operate the station.

#### Section 10-311.1

(a) A producer or refiner of motor fuel may not include in any agreement or contract entered into with a service station dealer any provision that directly or indirectly limits or waives any right of the dealer to:

  (1) petition any governmental authority or body; or

  (2) lawfully advocate or oppose any governmental or regulatory action with respect to any matter.

(b) Any provision in an agreement or contract that violates the provisions of subsection (a) of this section is deemed to be void and unenforceable.

#### Section 10-312

Each producer, refiner, or wholesaler of motor fuel who supplies motor fuel to retail service station dealers:

(1) shall apply all equipment rentals uniformly to all retail service station dealers supplied; and

(2) during periods of shortage:

  (i) shall apportion uniformly and equitably all gasoline and special fuel to all retail service station dealers supplied; and

  (ii) may not discriminate among retail service station dealers supplied in their allotments.

#### Section 10-313

Each contractual relationship between a supplier and retail service station dealer shall conform to the Maryland Gasohol and Gasoline Products Marketing Act and the federal Petroleum Marketing Practices Act.

#### Section 10-314

Each supplier of motor fuel to a retail service station dealer shall ensure that the motor fuel meets specifications set by the Comptroller.

#### Section 10-315

(a) This section supersedes any inconsistent provision of local law.

(b) A person who sells motor fuel at retail shall display signs in accordance with this section.

(c)

  (1) All dispensing equipment for motor fuel shall be marked conspicuously to show in numerals of equal size the price, including taxes, of a gallon of the motor fuel offered for sale.

  (2) If numerals that show a fractional cent are used, the combined height and width of the numerator and denominator shall equal the height and width of the other numerals used.

(d)

  (1) A sign or other means on the premises and approaches to a retail outlet that advertises the retail price of motor fuel:

    (i) may list the price and each tax separately if the listing of the total of the price and all taxes is the same size as the separate listing of the price; but

    (ii) shall list the total of the price and all taxes by numerals of uniform size.

  (2) In the listing of the total of the price and all taxes, a denominator need not be used to indicate a fraction, but:

    (i) if a denominator is used, the numerator and denominator combined shall be the same size as the numeral that indicates the whole number; or

    (ii) if a denominator is not used, the numerator shall be the same size as the numeral that indicates the whole number.

(e) If the retail price of motor fuel is advertised on a sign or by other means on the premises of and approaches to the retail outlet, the grade designation displayed for any motor fuel in the advertisement shall be the same as the grade designation that is required to be displayed for that motor fuel on the retail dispensing pump as specified by the Comptroller.

(f)

  (1)

    (i) Each retail service station dealer shall keep a sign on the premises that:

      (1) prominently displays clearly and visibly, for a whole measurement unit of regular gasoline sold on the premises:

      (A) the credit and debit price, if higher than the cash price; or

      (B) the credit and debit price and the cash price;

      (2) states the unit of measurement used; and

      (3) is readable by passing motorists.

    (ii) The sign required under subparagraph (i) of this paragraph also may prominently display clearly and visibly, for a whole measurement unit of diesel and other motor fuel products sold on the premises:

      (1) the credit and debit price, if higher than the cash price; or

      (2) the credit and debit price and the cash price.

  (2) All numerals on the sign shall:

    (i) be uniform;

    (ii) be the same size;

    (iii) be at least 8 inches high and 3.5 inches wide; and

    (iv) have a brush stroke of at least 1 inch.

  (3) A numeral in a fraction or a letter shall be at least one-third the height of a numeral that indicates a whole number.

  (4) If a new or additional sign is required to comply with this subsection, the supplier of the gasoline shall provide the sign and numerals without cost to the retail service station dealer.

(g) A sign required at a service station by this section or any other State or federal law is exempt from the provisions of a local law, ordinance, or regulation for the purpose of determining:

  (1) the total number of signs permitted; and

  (2) the area of signs permitted.

#### Section 10-316

The Comptroller shall issue a stop sale notice if the Comptroller finds that a person:

(1) stores or sells motor fuel from a location that does not have a valid certificate of registration;

(2) willfully uses a motor fuel advertisement that is misleading;

(3) willfully markets motor fuel that has not been approved; or

(4) sells motor fuel below cost in violation of Sec. 10-304.1 of this subtitle.

#### Section 10-317

(a) The Comptroller may suspend or revoke a registration for a violation of this subtitle, including the submission of a false statement, for a period not exceeding 30 days.

(b) If the Comptroller finds that a person has willfully altered, enlarged, or structurally modified a retail service station in violation of Sec. 10-304 of this subtitle, the Comptroller may suspend or revoke the registration until the violation is corrected.

#### Section 10-318

If, because of the marketing of an unapproved product, the Comptroller under Sec. 10-317 of this subtitle suspends or revokes the registration of a retail service station dealer who is without fault, the supplier of the unapproved product is liable in damages to the retail service station dealer in an amount equal to the net operating loss sustained during the period of suspension or revocation.

#### Section 10-319

Before a retail or wholesale delivery of motor fuel may be made in a container, the vehicle operator shall remove all liquid volume of:

(1) gasoline, if the next delivery will be special fuel; or

(2) special fuel, if the next delivery will be gasoline.

#### Section 10-320

(a) Except as provided in subsection (b) or (c) of this section, a retail service station dealer who reduces the price of motor fuel for self-service shall provide, on request, fueling service at the self-service price to a disabled driver who displays a disabled person's registration plate or parking permit issued by the Motor Vehicle Administration.

(b) This section does not apply to a retail service station dealer who sells motor fuel from:

  (1) a convenience store that:

    (i) sells motor fuel through remotely controlled dispensing equipment; and

    (ii) does not provide fueling service; or

  (2) a station that:

    (i) is exclusively self-service;

    (ii) is operated by 1 cashier; and

    (iii) has remotely controlled dispensing equipment.

(c) This section does not apply to a disabled driver who:

  (1) is reasonably capable of providing self-service; or

  (2) drives a motor vehicle that carries another individual who is reasonably capable of providing self-service.

(d) A retail service station dealer who violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $25.

#### Section 10-321

After gasoline to be sold at retail has been received in the State, a person may not add lead to the gasoline.

#### Section 10-321.1

#### Section 10-322

A retail service station dealer or marina may not with intent to defraud commingle gasoline by brand or grade.

#### Section 10-323

(a) A common carrier, contract carrier, manufacturer, refiner, special fuel seller, wholesaler of motor fuel, or person who buys motor fuel in bulk for resale in bulk who is engaged in the transportation of motor fuel may not willfully adulterate or commingle:

  (1) gasoline with special fuel; or

  (2) gasoline by brand or grade.

(b) Except for motor fuel intended for its own use, a petroleum transporter may not place an additive in motor fuel.

(c) This section does not prohibit the adulteration or commingling of gasoline that occurs as a result of transit through a pipeline system.

#### Section 10-323.1

(a) Every motor fuel distributor required to be registered under this subtitle shall report the volume of sales, for each type of motor fuel sold in this State, made to end users that are exempt from the motor fuel tax.

(b) Reporting shall be on a frequency established by the Comptroller through regulations, but may not be more frequent than once per calendar month.

(c) Reporting shall be on forms furnished by the Comptroller.

(d) Completed reports shall be forwarded to and be received by the Comptroller within 15 calendar days of the end of the report period.

#### Section 10-323.2

(a)

  (1) A notice stating "dyed diesel fuel, nontaxable use only" shall be:

    (i) provided by the terminal operator or distributor to any person that receives dyed diesel fuel at a terminal or distributor rack;

    (ii) provided by the seller of dyed diesel fuel to its buyer if the fuel is located outside the bulk transfer or terminal system and is not sold from a retail pump on which the notice required by this section has been posted in accordance with item (iii) of this paragraph; and

    (iii) posted by a seller on any retail pump where the seller sells dyed diesel fuel for use by the buyer of the dyed diesel fuel.

  (2) The notice required under paragraph (1)(i) or (ii) of this subsection shall be provided at the time of the removal or sale of the dyed diesel fuel and shall appear on shipping papers, bills of lading, and invoices accompanying the sale or removal of the dyed diesel fuel.

  (3) The Motor Fuel Tax Bureau may determine that compliance with a federal notice provision that is substantially similar to a notice requirement of this subsection satisfies that notice requirement of this subsection.

(b)

  (1) A person may not operate a motor vehicle on a highway in the State with fuel supply tanks containing dyed diesel fuel unless permitted to do so under a federal law or regulation relating to the use of dyed diesel fuel on the highways.

  (2)

    (i) A person may not sell or deliver dyed diesel fuel if the person knows or has reason to know that the dyed diesel fuel will be consumed for a prohibited on-highway use.

    (ii) A person who dispenses dyed diesel fuel from a retail pump that is not properly labeled with the notice required by subsection (a)(1) of this section, or who knowingly delivers dyed diesel fuel into the storage tank of such a pump, shall be presumed to know that the dyed diesel fuel will be consumed on the highway.

(c) A person may not:

  (1) except as provided in subsection (b)(1) of this section, operate a motor vehicle on a highway in the State with dyed diesel fuel in the propulsion tank of the motor vehicle;

  (2) sell or deliver dyed diesel fuel from a retail pump that is not properly labeled as required under subsection (a) of this section;

  (3) sell or deliver dyed diesel fuel from a petroleum delivery vehicle into a propulsion tank of a motor vehicle; or

  (4) refuse to permit inspection of a propulsion tank in accordance with Sec. 10-201(e) of this title.

(d)

  (1) A person is guilty of a violation of this section if the person, whether as a principal, an agent, or an accessory, intentionally:

    (i) commits a violation of this section;

    (ii) attempts to commit a violation of this section;

    (iii) conspires to commit a violation of this section;

    (iv) aids another in the commission of a violation of this section; or

    (v) abets another in the commission of a violation of this section.

  (2) A person is guilty of a violation of this section if the person intentionally:

    (i) induces another to commit a violation of this section;

    (ii) causes another to commit a violation of this section;

    (iii) coerces another to commit a violation of this section;

    (iv) permits another to commit a violation of this section; or

    (v) directs another to commit a violation of this section.

(e) A person that violates any provisions of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.

(f) In addition to any other penalty provided by law, the Comptroller may assess against any person that violates any provision of this section dealing with the use, sale, transportation, or storage of dyed diesel fuel:

  (1) for the first violation, a fine of $1,000 or $10 per gallon of dyed diesel fuel involved in the violation, whichever amount is greater; and

  (2) for a second or subsequent violation, a fine equal to the amount of the penalty assessed under item (1) of this subsection for the first violation multiplied by the total number of violations.

#### Section 10-324

Except as otherwise provided in this subtitle, a person who violates this subtitle or aids or assists in the violation of this subtitle is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both.

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Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)