The Petroleum and Natural Gas Regulatory Board Act, 2006

Administered Ministry: Ministry of Petroleum and Natural Gas

Act details

Short titleThe Petroleum and Natural Gas Regulatory Board Act, 2006
Long titleAn Act to provide for the establishment of Petroleum and Natural Gas Regulatory Board to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets and for matters connected therewith or incidental thereto.
Act number19 of 2006
Act year2006
Enactment date31 Mar 2006
MinistryMinistry of Petroleum and Natural Gas
JurisdictionCentral (Parliament of India)
Sections63
StatusNot repealed
Last checked on India Code29 Oct 2026
SourceIndia Code, Government of India

Summary

Summary of the Petroleum and Natural Gas Regulatory Board Act,2006
Key Provisions
1. Governance and Finance
• Grants by Central Government (Section 38): The Central Government may provide grants to the Board for salaries, allowances, and administrative expenses.
• Constitution: Includes grants, fees, penalties, and approved external sources.
• Application: For salaries, administrative expenses, and expenses under the Act.
• Accounts and Audit (Section 40): Maintenance and Preparation.
• Audit: By the Comptroller and Auditor-General of India.
• Reporting: Annual accounts and audit report to be laid before Parliament.
• Annual Report (Section 41): The Board prepares an annual report on its activities and accounts, to be laid before Parliament.
2. Operational Powers and Directives
• Power of Central Government to Issue Directions (Section 42): In the interest of sovereignty, security, foreign relations, or public order.
• Policy Directives for Public Interest: Ensuring supply, equitable distribution, and availability of petroleum, petroleum products, or natural gas.
• Taking Over Control in Public Interest (Section 43):
• Trigger: War, natural calamity, or similar disruptions to supply.
• Action: Take over control and management of entities, suspend operations, or entrust to government agencies.
3. Operational and Regulatory Provisions : 000Power of Inspection (Section 11): Right to Inspect, Enter, inspect oilfields, order production of documents, and examine persons.
• Status of Officers: Authorized officers are deemed public servants.
• Relaxation of Rules (Section 12): The Central Government may authorize deviations from rules in the public interest.

Legislative history

Legislative History:

The Petroleum and Natural Gas Regulatory Board Act, 2006

Short Title The Petroleum and Natural Gas Regulatory Board Act, 2006

Act Number / Year Act No. 19 of 2006

Act ID (India Code) 200619

Presidential Assent Date March 31, 2006

Enforcement Date October 1, 2007

Nodal Ministry Ministry of Petroleum and Natural Gas

Precedent & Strategic Rationale

1. Dismantling of the Administered Pricing Mechanism (APM):

o Following the government decision to phase out the Administered Pricing Mechanism and deregulate the petroleum sector starting in April 2002, downstream activities transitioned from a heavily controlled state-monopoly framework to a competitive market environment.

2. Need for an Independent Regulatory Body:

o To protect consumer interests, foster fair competition, ensure uninterrupted and adequate supplies, and regulate downstream activities such as refining, processing, storage, transportation, distribution, and marketing of petroleum and natural gas (excluding upstream crude oil and natural gas production) a specialized statutory regulator became essential.

Parliamentary Trajectory & Enactment

• Formulation: Prepared by the Ministry of Petroleum and Natural Gas to provide a comprehensive legal framework for downstream petroleum and natural gas infrastructure and market operations.

• Parliamentary Passage: Tabled, debated, and passed by both Houses of Parliament during the budget session of 2006.

• Presidential Assent: Received formal Presidential Assent on March 31, 2006, entering the statute book as Act No. 19 of 2006.

• Enforcement: Enforced on October 1, 2007.

Source: Official Records of Parliament, India Code, and Ministry of Petroleum and Natural Gas