Previous Year Question
Consider the following activities:
I. Production of crude oil
II. Refining, storage and distribution of petroleum
III. Marketing and sale of petroleum products
IV. Production of natural gas
How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?
Only one
Only two
Only three
All the four
Correct Answer: B
Detailed Solution
Under the Petroleum and Natural Gas Regulatory Board Act, 2006, the Board regulates the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas. However, the production of crude oil and natural gas is expressly excluded from its jurisdiction.
Activity I is not regulated. Production of crude oil is an upstream activity and does not fall within PNGRB’s regulatory domain.
Activity II is regulated. Refining, storage and distribution of petroleum are among the activities specifically covered by the PNGRB Act.
Activity III is regulated. Marketing and sale of petroleum products also fall within the Board’s jurisdiction. The Board additionally works to protect consumer interests, ensure adequate supply and promote competitive markets.
Activity IV is not regulated. Production of natural gas is also outside the Board’s jurisdiction. Upstream activities such as exploration and production of oil and natural gas are primarily associated with the Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons.