Official Question UPSC 2025
Consider the following activities: I. Production of crude oil II. Refining, storage and distribution of petroleum products 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?
Solution & Analysis
Answer: B
Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act, 2006, the regulatory scope is strictly demarcated into downstream and midstream activities, leaving upstream activities out of its jurisdiction.
•Statement I (Incorrect): Production of crude oil is an upstream activity. It is governed by the Directorate General of Hydrocarbons (DGH) under the Ministry of Petroleum, not the PNGRB.
•Statement II (Correct): The PNGRB is legally mandated to oversee the storage, and distribution of petroleum products to ensure fair trade and consumer protection. (Note: Refining itself isn't micro-managed daily, but the board sets the overarching standards affecting storage/distribution infrastructure).
•Statement III (Correct): The Board explicitly registers and authorizes entities to market and sell notified petroleum products and natural gas.
•Statement IV (Incorrect): Similar to crude oil, the production of natural gas is an upstream extraction activity and falls strictly outside PNGRB's purview.
Hence, only activities II and III fall under its regulatory framework.